For financially conservative investors who want to build and protect their assets, fixed annuities are a great option. With many investors scarred from losing money in the recent economic downturn, clients are interested in a vehicle that has a guaranteed minimum rate of return. That is one of the reasons why the fixed annuities industry is seeing strong sales growth.  

As always, when positioning an annuity purchase, it’s important to understand your clients’ needs. Fixed deferred annuities can provide a predictable future with flexible payout options that offer a guaranteed income stream, and those earnings aren’t taxed until the funds are used.

This is especially appealing for clients interested in using a fixed annuity as a tool to secure income for retirement, as a deferred indexed annuity can be “turned on” before or after retirement to create a liquid stream of income. How many investments do you know of — other than a fixed annuity — that can provide a predictable and guaranteed stream of income? 

Certainly, there are a lot of great reasons for your clients to buy a fixed annuity. Are you positioning these benefits in your sales conversations?

money vaultSafety

Fixed annuities can ensure that if anything should happen to one of your clients, the surviving spouse has a source of continued income in place.

This can help in case of a catastrophic illness or if a client (or spouse) would need to enter a nursing home.

liquidityLiquidity

Today’s challenging economy has heightened interest in liquidity. 

Many clients may hesitate to make long-term financial commitments without flexibility and access to their funds, including creating an income stream should they need it. 

tax deferralTax deferral

The tax benefits of fixed annuities play heavily in the minds of many clients.

Because earnings will not be taxed until withdrawals are made or regular distributions start, clients benefit from triple compounding: earning interest on principal, interest on interest, and interest on tax savings.

controlControl

Another appealing aspect of fixed annuities is the ability for clients to choose a predictable income stream.

Lifetime income options provide clients with the control of selecting payments that are guaranteed to continue for the duration of their life.

wealth transferWealth transfer

Most financially conscious clients are keenly focused on what happens to their money after they pass away. 

Fixed annuities are a great avenue for providing security to loved ones in the event of a death. 

Annuities can help an estate avoid probate, allowing beneficiaries to receive annuity proceeds without delays and probate expenses.