LINKEDIN
The sales of fixed annuities continue to climb. In the fourth quarter
of 2015, the United States annuity sales totaled $61.4 billion, improving five
percent compared to the prior year. In the LIMRA Secure Retirement Institute’s fourth
quarter U.S. Individual Annuities Sales Survey, it also showed that fixed indexed annuities were up 32 percent
at $16.1 billion.1
Why are people choosing fixed indexed annuities to meet their long-term
goals and retirement needs? Why are annuity sales continuing to grow each
quarter?
- Opportunity for tax-deferred growth
- Guaranteed* lifetime income
- Protection of premium from potential market downturns
- Built-in Flexibility
- Growth accumulation
As more people become aware of fixed indexed annuities, it gives a
financial professional ample opportunity to share in detail about the products.
It shows the importance of being transparent and ethical. Clients need to be
aware of all fees, interest, and guaranteed* income payments from the start. The
financial strength of the issuing insurance company is also an important factor
during the decision process.
When this is done, it becomes easier to maintain a happy annuity base
and continue to increase satisfied annuity clients. They are happy because
informed retirement decisions are being made.
1“LIMRA Secure
Retirement Institute: Indexed Annuities Break Quarterly and Annual Sales
Records,” http://www.limra.com/Posts/PR/News_Releases/LIMRA_Secure_Retirement_Institute__Indexed_Annuities_Break_Quarterly_and_Annual_Sales_Records.aspx,
last accessed 3/21/16
FOR FINANCIAL PROFESSIONAL USE ONLY.
NOT FOR USE WITH CONSUMERS.
*Guarantees provided by annuities
are subject to the financial strength of the issuing insurance company; not
guaranteed by any bank of the FDIC. A fixed indexed annuity can provide
annuitization as a means to provide retirement income payments. An alternative
option to annuitization could be the purchase of an optional lifetime income
rider, a benefit for which an annual premium is charged.
Tax-deferred interest accumulation offers no additional value if the
annuity is used to fund an IRA under current tax law; additionally, tax
deferral may not be available if the owner of the annuity is not a natural
person such as a corporation or certain types of trusts.
Annuities are designed to meet
long-term needs for retirement income. They provide guarantees against the loss
of principal and credited interest, and the reassurance of a death benefit for
beneficiaries. Please note that in order to provide a recommendation to a
client about the transfer of funds from an investment product to a fixed
insurance or annuity, you must hold the proper securities registration and be
currently affiliated with a broker/dealer.
If you are unsure whether or not the information you are providing to a
client represents general guidance or a specific recommendation to liquidate a
security, please contact the individual state securities department in the
states in which you conduct business.
This information is designed to
provide general information on the subjects covered. Pursuant to IRS Circular
230, it is not, however, intended to provide specific legal or tax advice and
cannot be used to avoid tax penalties or to promote, market, or recommend any
tax plan or arrangement. Encourage your clients to consult their tax advisor or
attorney.
Annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries.
Annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries.
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