Who Would Be A Good Candidate for an Annuity
Guaranteed retirement income is becoming a hot topic with the low interest rate environment and market volatility. Those planning for retirement should evaluate their circumstance to determine whether they’re a good candidate for a guaranteed income option like an annuity. The purpose of a fixed annuity is to help with a variety of financial goals (tax deferral, principal-protected accumulation, lifetime income streams, access to funds, wealth transfer benefits, and it bypasses probate).
Why an Agent Should Consider Offering Annuity Products to Clients
Research shows that if you have more than 2 products (preferably 3 different products) sold in a household, the chance of losing that business to another agent is almost non-existent. Many agents are already selling 1 product (i.e. medicare, life insurance, etc.). What if you could provide a finanical vehicle that is about safety and guarantee and still provides an opportunity for a fair rate-of-return? That’s what an annuity can do. Read further to learn about a few considerations when contemplating whether you should bring an annuity product(s) on board to what you already offer so that you can sell more products to a household and capture their business for the years to come.
DOL Fiduciary Requirements
The Department of Labor (DOL) Fiduciary Rule has been updated to expand the agency’s interpretation of the existing five-part test to determine when an individual is an ERISA fiduciary. For sales to qualified plans, beginning January 31, 2022, the DOL will require compliance with the Fiduciary Rule.