Back in the 90’s I was fortunate to be involved in purchasing some life insurance companies and to function as their president. There was a brand new product just being launched in America. This little gem was called an “index annuity”, built on a standard deferred annuity chassis. It has a small guarantee on the principal but had the interest credits linked to the S&P 500. WOW…did this ever transform the annuity business. So, we developed and launched a product and started selling hundreds of millions per year. Think of it, a product that touts…when the market increases, you share in the winnings. When the markets goes down…you won’t lose a penny. Plus, all principal and previous gains are locked in for the client. Wouldn’t it be nice to have something like that now? Well we do...and it’s even better.
The new FIA’s also provide an income that your client can’t outlive. And, in the majority of cases, they can withdraw more than the “standard 4% rule” of withdrawals. So, as you have heard, a reasonable rate of return, principal is guaranteed along with previous gains and now an income that you can’t out live. Ladies and gentlemen, we have the product that America wants. We just need to find out if they have “the appropriate amount of money at risk” If not, maybe it’s time to have them get introduced to a Safe Money Product.
Now, I have a suggestion. There is no need to “over-promise” what we have is tremendous. Personally, I don’t like to offer an index that is based on hypothetical back testing. Why do it when there are so many great iindices, some new to FIAS, that have 10 year histories. (If you don’t know which ones have true historicals, give us a call)
In summary, maybe you need to be branded as “the Safe Advisor”. Check out www.safemoneyplaces.com and consider membership in the Safe Money Places Agent Network. And, after you have your next client appointment, if they reject the Safe Money concept, simply give them your parting gift, a nice roll of Tums. Until next time…good selling.