My constant companion with senior clients is the word “guarantee!” The unique structure of annuities and their income riders gives the buyer a great sense of relief and trust. There are no words like “potential growth” in this product. We need to be alert and informed about the world around us as it bears directly on risk avoidance. If one has the proper licensing it is also our responsibility to point out the risks of the stockmarket in some detail. This is the education part which is so important.
~Rknox0608
In response to the article: “Variable annuities and the lifetime income challenge”
I am not securities licensed so my sales of annuities that feature the Lifetime Income Benefit Rider have all been “fixed annuities.” Though, as you know, there is a chance for the annuitant to choose which asset allocation strategies they would like (typically 10 to 15 different indexes are available to the annuitant) even though it is a fixed annuity. Ostensibly, this would allow them to reap even more benefits than the Lifetime Income Benefit Rider provides. At a bare minimum however, that rider is fantastic and I try to get every single one of my clients to purchase one of these annuities with the rider. Even my Mother! Three plus years ago she purchased an annuity from me with (AVIVA). Her $300,000 deposit was matched on day one with a 10% bonus. On the first day, her “account” had $330,000. That account grows at a (bare minimum) of 6.5% compounded. If her indexes selected have any kind of growth, the amount of monies available grow even higher. She has yet to “trigger” her lifetime income. The current account value is $424,533.90. Her lifetime income—should she trigger it this year—would be $25,472 annually. As you know, this number grows each and every year until she triggers that income. BTW, should she ever need LTC, the lifetime payouts double for the rest of her life!
~Ken Pallante