Fixed indexed annuities (FIAs) are a great investment option for many people, especially those who are nearing or concerned about their retirement and who are looking to ensure that they have sufficient finances to support their lifestyle.
Recent research from the Insured Retirement Institute, 2015 Fixed Indexed Annuity Distribution Trends, reveals that consumer interest is high across the board for fixed indexed annuities. “While they are not very likely to ask about [FIAs], almost 40% of distributors believe their customers are completely open to using them in their portfolios,” says the report. According to the IRI survey results, approximately 70 percent of consumers from all demographic groups are at least somewhat receptive to purchasing FIA products, with nearly half (47%) either very receptive or extremely receptive about using them as part of their portfolios.
Brokers who are familiar with the various benefits of this unique annuity type can communicate the details to their clients. But, it turns out that there are specific demographic groups most receptive to hearing the FIA message.
For a recent fixed indexed annuity study sponsored by Athene and done in conjunction with LifeHealthPro, research firm Beacon Technology Partners surveyed 543 brokers who sold at least one annuity product to a client within the previous 12 months, and who worked as an investment or insurance professional for a minimum of one year. The survey found that there are three product FIA selling points – the potential for earnings, high participation rates and guaranteed minimum interest rates. In addition, study participants say that they expect sales of FIAs this year to increase either substantially or somewhat over last year’s levels.
Client age is clearly a strong factor in FIA sales. Survey results reveal that FIAs are a popular topic for clients who have reached age 50, with more than three-fourths (78%) of survey participants indicating that they discuss FIAs with this group. In addition, 82 percent of respondents say that they broach the subject with individuals in their 60s, and 70 percent say they discuss FIAs with their clients who are 70 years old or older.