Imagine walking into your local sporting goods store and telling the salesman, “Give me your best golf club.” He would inevitably look confused and then ask a myriad of questions: What’s your budget? How far do you want to hit the ball? Do you need a putter? A driver? A sand wedge? An iron? Are you left handed? Right handed? There are many factors that go into choosing the perfect tool for the right situation.
Choosing the perfect annuity product for your client is like choosing the perfect club. Here are eight key questions to help you unlock the best product for your client.
1. How old is the client? This is the most vital piece of information. The products we can offer often depend on the client’s age and most annuities have a niche market — there are certain annuities that work best for certain age groups.
2. How much premium do they have? Minimum and maximum premium amounts vary by insurance carrier and by product. Knowing the amount of money the client has available to place into their annuity will help us determine which one is best.
3. Does the client need a single premium or a flexible premium product? Does the client want to make a one-time contribution or rollover to their annuity, or would they like to periodically add more money to their account value to build up their retirement dollars?
(Bonus sales tip: A flexible premium product would be great to add RMDs to if the client doesn’t require them in their retirement.)
4. Is the client interested in generating a lifetime income? I don’t know about you, but I love getting paid. How great would it be to get paid the same amount for the rest of your life without having to work? That’s what an income rider can provide to clients