You’re probably familiar with the saying, “Don’t put all your eggs in one basket.” For clients who experienced a great deal of loss in the market crash of 2008, this phrase rings resoundingly true. Given the challenging economic environment we continue to face, the benefits of indexed annuities have never been more apparent. They offer clients:
- Principal protection from market downturns
- The potential for index interest growth
- Safety backed by strong and well-regulated insurance companies
But what if there’s a way to create an even larger benefit for clients using a diversified annuity portfolio? This concept involves participating in various annuity crediting strategies that are not correlated with one another to increase the chance of earning interest credits even if the market drops.
First, let’s take a step back and talk about correlation. Correlated assets are those with values that automatically move together. For example, most index crediting methods are correlated with the S&P 500® or other similar indices. When those individual markets perform well, a client’s credited interest would increase. When those markets decline, a client would receive no interest credits. By incorporating an alternative index crediting option based on an underlying index that is non-correlated to traditional, equity-based indices, you can help provide clients with diversification.
Creative is proud to be one of four IMOs offering such a crediting option available with the Total Value Annuity from Security Benefit Life Insurance Company. The 5 Year Annuity Linked TVI (ALTVI) is historically non-correlated with the S&P 500 and other indices commonly used as a basis for index interest credits. It also featured uncapped interest potential*with a 100% participation rate.
With industry-leading accumulation, death benefit and income benefit options, this annuity may be perfectly suited for today’s consumer.
>> Download the “Diversified Annuity Portfolio featuring the Total Value Annuity”
In summary, combining the Total Value Annuity’s ALTVI crediting option with other indexing options available from other annuities may generate a safe means to increase the likelihood of clients receiving credited interest with less total risk. To walk through the complete solution step by step, download your copy of “The Diversified Annuity Portfolio, Featuring the TVA.”
Then, visit www.creativemarketing.net/tva for complete product details and access to a resource library that you can use when working with your Annuity Sales Consultant to incorporate this strategy with clients.