The DIA is also referred to as a “longevity” annuity. It’s pretty simple: your client gives the insurance company a lump sum of money. The client then picks the date when they want income to be paid. That date is usually 10, 15 or 20 years down the road. Five years is the minimum and doesn’t show as well.
So, what’s the big deal? Let’s look.
Since the insurance company knows how long they will have the money…the payouts are better. In most cases, they payouts are significantly better than FIA’s or SPIAS when it comes to payouts.
So, what is the downside? Let ‘s take a look.
In return for the better payout, there is virtually no liquidity when the money is tied up. That is why the sales have usually gone to the well heeled.
So, is a DIA good for your clients?
That is what I am asking you. We are considering a major expansion into this product line but need your feedback in order to make a final decision…
- Do you sell them now?
- Who do you sell them through?
- Who is your typical buyer?
- What are your thoughts on this product?
There is more to a DIA, and this is just a thumbnail sketch. But we would love to hear your thoughts. If you get a chance, please us ask a question, leave a comment, and provide us with any feedback.
Your feedback will help us make a decision to help better serve your needs. We will respond to any comments as soon as we get a chance to review. Thank you for your cooperation!
Until Next Time…Good Selling!
Raymond J. Ohlson, CLU, CRC
President & CEO
The Ohlson Group, Inc.