Tag Archives: Annuities

Need More Annuity Sales? Compare it to Social Security!

Annuities for Your Nest EggFor many older Americans, Social Security immediately comes to mind when they think of retirement benefits. That sense of security and monthly income puts them at ease when entering their “Golden Years.” But by explaining annuities and their benefits the same way retirees understand and view Social Security, you could see your National Agents Alliance annuity sales increase dramatically.

The problem is, most Americans don’t understand annuities and believe it’s just another expense. But, when you break it down like Social Security they can better understand how annuities can help them during retirement.

LifeHealthPro.com has broken down how retirees view and what they don’t consider when it comes to Social Security:

How retirees view Social Security:

  • They view Social Security as a monthly income plan.
  • They can tell you exactly what they will receive in benefits at a given age, because of the certainty it provides.
  • They understand that the longer they wait to take income the more income they will receive.
  • The income is actually increased by 4 percent to 8percent per year as they wait to start taking it. A boomer gets a whopping 8 percent increase each year they delay the income.
  • These benefits are viewed as stable, predictable and backed by the government.

What retirees don’t consider when it comes to Social Security:

  • “How much money did I have to put into Social Security to get this monthly income?”
  • “What rate of return did I make on my money that I’ve paid into Social Security?”
  • “What is my account balance on my Social Security account for lump-sum withdrawal?”

By challenging your clients to consider those questions when talking about annuities and Social Security, it will get them to think about and really consider other retirement planning options. It is very seldom that Social Security can cover your basic needs and live a comfortable lifestyle and as an agent with National Agents Alliance, it is important to make your clients aware of the options they have to supplement it.  By talking about how annuities can help to fill that gap, you can continue to assist your clients with leading a more comfortable retirement.


Females More Likely to Purchase Annuities than Males

If you are trying to sell annuities, you might find it interesting to know that more women are likely to buy an annuity than men, according to a study by LIMRA.

AnnuitiesLIMRA findings indicate that women are “somewhat” more likely to purchase an annuity; with the average age at which the product is bought is 73. The majority of sales, according to LIMRA, consist of guaranteed payments.

LIMRA found that there is more flexibility with annuities than consumers realize. Potential clients often hesitate to buy an annuity because they have a fear of losing control of their money. However, research shows that two-thirds of the contracts actually allow clients to convert a portion of remaining payments to cash if necessary.

In further research, LIMRA reports indicate that buying annuities through an agent remains the most popular method of purchasing the product, though a there is evidence of consumers using brokers and banks. At any rate, it’s important for a client to feel comfortable when purchasing an annuity from their agent. Planning for one’s final years is an important decision that should not be trusted to just anybody.

You want to ensure that you and your family is taken care of as you live out your Golden Years. Finding the right agent and relationship to make sure this happens is very important. Don’t wait until it is too late. Take the proper steps today to make sure you put yourself in the best possible position financially as you plan for retirement.

Visit National Agents Alliance NAALife for more information regarding annuities.


Retirement: Do you know what you are responsible for?

Retirement has changed dramatically over the past few years.  There once was a time that you would get a job, put in your 30 years with said company and then have your retirement party and start drawing your company paid pension.  The days of the company paid pension have past.  Many people may think, well, I’ve got my social security, but did you know that in 2010 for the first time in history, social security paid out more than was paid in.  If this trend continues, the days of social security will soon be at an end as well.  It is now up to the employee, and not the employer to prepare for retirement.  How much will you need and where is the best place to put your money?

Determining how much you will need is the complicated part it is different for every individual, but the good news is that there are calculators available to help you figure it out!   Now where can you safely start your nest egg?

Retirement: Do you know what you are responsible for?Most people first think “The stock market” or “The bank” but is that really where you want to put your hard earned money?   If you consider the stock market as your best choice, you have to remember you will have to take the highs with the lows.  Consider the instability of the stock market, it is great when the economy is doing well, and when the stocks are going up, but what happens when the stock market crashes due to the economic state?  You can lose everything, and be left with nothing to live off of after you retire.  Now let’s consider the banks.  Many people decide that they want to put their money into a CD, which on the outside looks like it gets a pretty good interest rate and it looks like a stable plan; however if you dig a little deeper, you will learn a few things.  CD’s are a 10-99 producing account which means that you have to pay taxes on it and on all of the interest it earns.  With this being true, you are really only getting a return of about 1%.  Adding to that the fact that many banks fell during the recent economic recession, you may want to re-consider.

So, what should you consider?  How about a fixed annuity?  Fixed annuities are becoming more and more popular as the economy continues to be unstable.  You can look at a fixed annuity as a tax deferred savings account with an insurance company, instead of a bank.  Why would you choose an insurance company to save your money instead of a bank?  First of all, during the economic recession of 2008-2009, no insurance companies fell, unlike many banks. Secondly, banks are stand alone companies so if they fall to a recession, they have no real “back-up” for your money.  When you pay in to an annuity with an insurance company, you are not just placing your money with one insurance company but a group of insurance companies.  That way, if one company falls, there are several more that will take up the slack, and keep your money safe.

With annuities, you get positive market benefits without the risks.  That’s right, if you put your money into an annuity, as the market goes up your earnings go up but if the market goes down, your money is protected and will not decrease.  Let’s say that you put $100,000 into an annuity and during the next year the market goes up 10%, your new principle will be $110,000. Now, let’s say that the very next year, the market goes down 25%… Your principle will stay $110,000 you are guaranteed NOT to lose any money!  The insurance companies also give you a minimum guarantee rate, so in a year that the market dives, you will still gain that minimum rate.

Once you have decided that it is time to take advantage of the money you have saved, you have several different withdrawal options.  You could set up a withdrawal schedule in which you would get a check of $X every month, or you could pull out different amounts as they are needed.

If you still have questions, it is time to contact your local Insurance Agent and start asking.


3 Questions about Annuities That National Agents Alliance Agents Should Answer

Annuities can intimidate some insurance agents; it’s not part of insurance sales 101, but it can be a great add-on to your sale, as well as helping protect your client’s retirement assets. The best thing to do is to study up on the basics and understand how an annuity will satisfy your National Agents Alliance client’s needs concerning a savings plan.

But let’s start with the basics first…

What is an Annuity?

An annuity retirement product that allows you to save for your future on an tax-deferred basis and then allows you to choose a payout option that best meets your need for income when you retire—lump sum, income for life, or income for a certain period of time.

What are the Types of Annuities?

Below are the most common types of annuities that you should be familiar with.

  • Fixed Annuity -An annuity contract in which the premiums you pay are credited with a fixed rate of return by the life insurance company, and the company guarantees a fixed payout every month.
  • Deferred Annuity - A contract in which annuity payouts begin at a future date.

The above annuities are those that can be sold with a standard life license.

At National Agents Alliance, we understand how important annuities can be in adding extra value to a client’s policy, as well as extra sales for you.  Our resident annuity sales guru, Gina Hawks talks about three crucial questions that you must answer to make the sale and protect your clients’ accounts for many years to come.

“Is my money safe?”

Question number one asks you to prove that the client’s accounts are in a safe place.  Because annuities are not often discussed as a primary means of savings, many people don’t know the answer to this question.  Here’s the answer:

Annuities are as safe as banks, but there are further advantages than banks. Recently several banks insured by the Federal Deposit Insurance Corporation (FDIC) have gone bankrupt, however stayed in business. Because all reputable banks must file with FDIC and make a payment into the system, this allowed them to ensure a certain amount of money

Just as banks are supported by the Federal Reserve System, insurance companies run under the Legal Reserve System.  Each state has a State Insurance Department that requires Insurance companies operating in their state to file reports proving they have money to cover policies with their clients. Insurance is a highly regulated industry.

The bottom line is annuities are 100% safe, dating back to the Roman soldiers. No one’s ever lost money with annuities.

“Can I get my money if I need It?”

Annuities are not 100% “liquid”, meaning they cannot withdraw money at any time and at any amount.  However, in order to ensure stability and safety of their savings, this may be a worthy exchange. Make sure that your client has the amount of liquidity you’re providing is enough. It’s called “being suitable,” and it is part of being a responsible mortgage protection specialist.

“Can your National Agents Alliance client compromise with access to about 10% free withdrawal every year? Can you qualify that by 10 percent access is enough for them?”

If the answer is yes for both you and your client, an annuity may be a good idea.

“Am I going to get a fair return?”

People want a floor with no ceiling: 100% upside potential with no downside risk. The biggest thing that annuities have going for them is the great amount of growth with minimal interference from tax deductions.

Annuities offer the strongest guarantees on principal and interest.  Unlike a 401k, no matter how volatile the market is, your annuity will stay at the original principal amount you invested, unless withdrawals are taken. It can only go up! Considering the economic climate this is a huge selling point.

With annuities through National Agents Alliance, you’ll can earn a bonus on your initial premium. Some carriers have annuity products that offer a 10% bonus, your client may move $10,000 into and annuity and have the value of his/her annuity immediately rise to $11,000. If they Move $75,000 in, add 10% and it becomes $82,500.

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Like any sales, the important thing to remember about an annuity sale is to highlight the benefits, but also to make sure your client is going to receive the correct type of savings plan that will lend itself to their lifestyle and needs. If you do this, the annuity sale can become an additional thousand or so payment to your policy. Remember, this is Commission on top of your insurance sale!


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