Annuities Are On Fire - Let's Go to Work!

Rates remain near all-time highs, and the Fed’s most recent announcement confirms what we suspected—they’re not cutting rates this quarter. That means our window of opportunity remains wide open. Carriers are moving fast to stay competitive: increasing payouts, launching new products, boosting cap and participation rates, and getting creative with rider designs and bonuses.

I’m writing today to make sure every Ohlson Group agent knows just how hot this market is. The outlook for annuity sales this quarter is strong, and if you’re paying attention, it’s clear: this is the time to refinance your client’s retirement plan. Contact your clients and set up a periodic review, and review those client files. You'd be surprised how many policies can be upgraded - and that means more money in your pocket! 

Let's talk about premium bonuses. Several 10-year surrender annuities are offering premium bonuses of 10% or higher, many with no fees. Want a bigger bonus? Choose a version with a fee—still incredibly competitive. These bonuses are higher than at any time in the past 20 years and they won't be here forever. As mentioned, this is the season to refinance your client's annuity portfolio. An FIA with a premium bonus can, many times, cover the surrender penalty and start them off ahead of where they were when they transferred the funds. Plus, due to the high interest rate environment, these FIAs likely have higher caps and participation rates compared to their existing policies.

Many agents also might be wondering... "Can I replace an FIA with an income rider?"  The answer many times is YES!  We’re seeing income riders with roll-up rates, payout factors, and bonuses that often outperform annuities written just a few years ago. Give us a call or send us an email with case details and we can run the numbers to see if we can give your clients a raise in their retirement income.

As you all are aware, many riders now include income doublers—if your client can’t perform two of six activities of daily living, their income can double, giving them a built-in hedge against long-term care costs. We even have FIAs with true LTC benefits included. 

Finally, when it comes to marketing and branding, we've got you covered. We own www.safemoneyplaces.com and over the past decade have built a brand we call "The Safe Money Places Agent Network". Want to join us? All you have to do is submit a piece of business and you automatically become a "Proud Member of The Safe Money Places Agent Network". Once you're a member, you get big perks - a no-cost Safe Money Places-themed website, access to proprietary client-facing handouts and videos and more.

Finally, our agents continue to find success in our in-house annuity lead program. We've been running this program for over eight years and are lucky to have a talented digital marketing team. If you need to refill your pipeline, give us a call or set up a time with one of our marketers to get started. 

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Until Next Time – Good Selling! 

​Joseph R. Ohlson LUTCF
President
1-877-844-0900
[email protected]