When it comes to making financial preparations for the future, there is nothing clients love more than a sure thing. The opportunity to make investments with a guaranteed minimum rate of return is just one of the reasons why fixed annuities are gaining in popularity, especially among post-recession investors.
In a recent post, I outlined the Top 5 reasons to buy a fixed annuity for financially conservative investors, but there are many reasons for your clients, young and old, to consider this investment option. Here are five additional benefits to help you position fixed annuity sales during your conversations with clients.
1. Fixed deferred annuities can have multiple guarantees
Fixed deferred annuities guarantee a minimum return for your client’s investment. For a conservative-minded investor, it doesn’t get any better than that. Additional guarantees, including interest rates for specific periods of time, are prevalent in the annuity marketplace today.
Your clients can choose a guarantee period as short as one year and as long as 10. Though not as plentiful in the marketplace, an annuity’s principal also can be guaranteed during the surrender charge period.
2. No sales charges
With fixed annuities, your client’s entire premium gets put to work on their behalf. No sales charges are assessed — ever.