When it comes to purchasing the right annuity, every client wants and needs something different.
One thing most clients have in common, however, is the desire to make meaningful choices. With so many different annuities out there, it can be difficult for clients to know every option that is available to help them reach their financial goals. That means it falls to you, their trusted resource, to help them find the best options to make those choices.
Thankfully, there are a variety of new market options available that now allow for greater choice, helping you to tailor solutions to your clients’ financial goals accordingly. So, what new options are out there? And which ones will lead your clients to financial success in retirement?
The following four tips are all-important when it comes to helping clients choose an annuity that works for them.
1. Consider a back-to-the-future approach with index annuities.
For a time, it seemed like annuities were growing further and further from the simple, straightforward designs that made them so popular. However, a resurgence in index annuities shows that they are a great approach that makes sense to clients; especially as today’s versions include different ways to reap the benefits of index rate increases, including rate cap, participation rate or fixed interest crediting options.
In my experience, I have found that clients prefer not to have a hard-capped limit on how much interest crediting they can receive and are becoming more comfortable with the way participation-rate crediting works. Index annuities that base their growth on well-known indices, like the S&P 500, without providing a capped limit to a client’s earning potential are especially popular, as they offer a risk-free way to earn higher interest crediting during a bull market year.