As an insurance professional with in-depth knowledge of products and services available, the advantages of annuities are no surprise to you, yet they can be surprisingly hard to sell. Many clients have preconceived ideas of what they are, how they work and have some sort of second-party horror story from friends, family members or even someone in a magazine whom fell victim to withdrawal fees or disability.
As the National Association for Fixed Annuities (NAFA) says, National Annuity Awareness Month was created in 2014 to “help educate financial professionals and the public on the important role annuity products play in helping Americans save for retirement as part of a secure retirement plan.” Because, while many Americans understand the importance of saving money in a 401(k) from a young age and making investments in property, the stock market and other financial vehicles, they are often unaware of the numerous benefits annuities offer and how they can positively affect your cash flow during retirement.
To curtail misconceptions about the annuity, trade associations such as NAFA, Annuity Awareness Association (AAA) and Society for Annuity Facts and Education (SAFE) are providing educational material, webcasts and social media communications, and an array of awareness tools to consumers throughout the month in order to stress the important role annuity products can play in helping Americans save for retirement.
To review, benefits of annuities include (but are not limited to):
- Guaranteed lifetime income
- Not being subject to market volatility
- Deciding when you want the payout to begin
- Being tax-deferred
- An option to add riders (benefit, long-term care, etc.)
Who doesn’t like the sound and the reality of having guaranteed retirement income they can’t outlive or the option to add extra riders on to the annuity with the option of getting the money back, should you not use it? Annuities were created to offer consumers a more stable way to invest as they age and are less keen on investing in risky financial vehicles, yet they aren’t stressed enough.
Don’t let your peers fall by the wayside. Educate and inform them using unbiased, easy-to-understand information showcasing the benefits of annuities so they can make retirement planning a forethought, not an afterthought. With more educated and informed consumers, they’ll be looking to you for guidance in deciding, customizing and purchasing annuities, as well as other financial vehicles for their retirement income portfolios.
For more information on how you can get involved with Annuity Awareness Month and informative websites you can provide to consumers, visit websites from Annuretirement, Annuity Awareness Month and The Society for Annuity Facts & Education or contact a member of your CreativeOne sales team at 800.992.2642 for more information on how to best position annuities.