Low returns. High Fees. Too complex. No access to my money.
Despite the progress our industry has made in promoting the benefits of annuities, clients still harbor these assumptions. Producers trying to help their clients by providing guaranteed retirement income must often overcome annuity objections such as these.
It’s an uphill battle to fight the good fight when so many “experts” on the Internet, social media and television speak negatively about these products without explaining the potential benefits. Seriously, when is the last time you heard a self-proclaimed financial expert mention how fixed and indexed annuities provide guaranteed minimum growth without downside market risk, or that they can offer guaranteed retirement income for life? Probably never.
Many clients, today, are more concerned with preserving the assets they currently have than actually seeing their money grow.
Unfortunately, the flow of information in the fixed annuity space is slow and mostly dependent on the sales force of advisors and insurance producers who offer these products.
One thing working in our favor is this fundamental truth: Many clients, today, are more concerned with preserving the assets they currently have than actually seeing their money grow. After the market downturns of 2002 and 2008, people are looking for a safe alternative when planning their retirement. Clearly the fixed annuity has become a viable option in retirement income planning. Whether clients are looking to accumulate sufficient assets prior to retiring, guaranteeing a lifetime income stream, or possibly establishing a solid legacy plan for their family, fixed annuities can offer many different solutions.
Carrier innovations enhance annuity benefits
Also helping producers overcome annuity objections are innovations from several carriers. Many of these new features focus on three very specific areas: guaranteed income, guarantee of principal, and the opportunity for greater accumulation than most “safe money” alternatives available today. With interest rates holding steady, albeit at an all-time low, insurance carriers are creating ground-breaking ideas to enhance the benefits of fixed annuities. Some of these latest innovations include the following:
- Uncapped index interest crediting strategies for potentially higher returns.
- “Stacking” or “Stacked” growth to income account values. This feature typically utilizes a combination of a guaranteed interest rate along with a portion of the interest credited, if any, to the accumulated value.
- Enhanced liquidity features that allow cumulative withdrawals and/or doubling or tripling of income to assist in health-care costs*.
- Increased payout factors when clients trigger the lifetime income feature.
It is critical for us to educate clients on the new options available and the numerous benefits of using fixed and indexed annuities. Today’s fixed annuity provides guaranteed safety, better than average returns, greater access to money, and guaranteed lifetime income. Explaining those benefits is an effective way to overcome annuity objections.
CreativeOne’s Annuity Sales Consultants can direct you to the right product fit for your clients and provide sales and marketing ideas to help you start the conversation.
Need more advice on handling annuity objections? Discover our “Sixty-Seconds to Yes!” online training platform located on our Dynamic Marketing Portal or call us at 800.992.2642 for more information.