This has been a tremendous year for the annuity industry and there are several reasons why this is the case. High interest rates allow carriers to provide stellar caps, participation rates and premium bonuses. This high-interest rate environment also allows carriers to be extremely competitive in the guaranteed lifetime income space.

For decades, financial advisors have been telling clients that they can safely withdraw four percent of their account value each year and have a “good chance” of not outliving their account value. While this rule holds true in good times, it can be devastating to unlucky folks who happen to retire during a market downturn.

We are insurance agents, safe money masters and have the shield and weaponry to protect our clients’ nest egg and one powerful weapon is the GLWB (guaranteed lifetime withdrawal benefit) rider.

Throughout all the turmoil in the economy, political uncertainty, trade wars and inflation, the equity markets have been resilient. The S&P 500 is nearing all-time highs as of this writing and the GDP for Q2 came in revised to 3.3%. To the naked eye, all seems calm.

However, we all know that market resiliency will eventually subside, and your clients are likely to think the same thing. Retirees and those close to retirement have lived through the dot com bubble, the 2008 financial crisis and the 2020 pandemic which caused a significant downturn in the equity markets. These folks need guarantees – not maybes.

With the power of the fixed index annuity and the GLWB, your clients can rest easily, knowing they don’t have to worry about the equity markets at all. They will feel safe and sound knowing they have a guaranteed income for life. Oh, and that four-percent withdrawal? That is nothing compared to the 6, 7 or 8 percent withdrawals our GLWB’s provide.

These income riders also provide a hidden benefit – the chronic illness “doubler”. Yes, most of you are aware of this feature. However, for those that aren’t familiar, most income riders come with an enhanced income benefit that will double income payouts if the client develops a chronic illness or has to go to a nursing home.

The time to conduct a periodic review for your client base is now. Same goes for connecting with prospects that never moved forward. Let us help you with these meetings. Give us a call or book an appointment and together we can put a plan together that will make you look like the hero.
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As I end this commentary, the old saying rings true when it comes to income planning – what’s old is new. Over the past 20 years in this business, many things have changed. The one thing that has not changed is the retiree’s need and desire for a guaranteed income that they cannot outlive with a hedge against long-term care costs to boot.

Let’s talk about AI and your practice. If you are not using AI currently, you are already behind. But that is okay! AI, while super-powerful, is also super-easy to use. And it is not just a fad – it is here to stay and only going to become more important as each day goes by, particularly in our life and annuity industry.

With ChatGPT unveiling its latest fifth-generation model and other companies coming out with similar versions recently, these tools are becoming a powerhouse for those who know how to utilize them. It doesn’t take much time to get the hang of how to use AI and once you start using it you will become increasingly more productive (and blown away by what it can help you with).

Using AI can vastly increase your productivity while decreasing time spent on content creation and analysis. You can craft emails, sales brochures, business cards – even websites and more – all tailored to your practice.

You know that your time is best spent on seeing the people, meeting prospects and getting deals done. Why not consider using an AI model to bolster your credibility by increasing output and touch points to your clients and prospects?

How many times have you thought about putting that e-booklet or guide together but couldn’t find the time? The same goes with weekly or monthly client-facing newsletters. You now have the time and the tools – thanks to this incredible technology.

You might be wondering, “Is AI writing this for Joe?”

The answer is no – this is me, Joe Ohlson, writing this in real life. However, I could have made this much easier on myself by having AI write something similar – and maybe better!

Small touches matter and having a robust collection of content that is personalized and well-crafted can make the difference between closing a sale and losing it to another agent. For around $20.00 a month, you can purchase an AI model and start creating content that is unique to you and that can be created in seconds.
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As I wrap up this commentary – Nothing can compete with face-to-face meetings and handshakes, and I don’t think AI is going to replace insurance agents and advisors anytime soon. You have the unique personality and skill set that you’ve crafted over several years. You know how to close life and annuity sales. YOU are the key to all of this. You created your success – consider adopting AI to improve what you’ve already built.

To all the agents in the field, we are in a unique position with this high-interest rate environment, our annuity products continue to be key pieces of the retirement planning puzzle.

We've talked recently about refinancing your clients’ retirement - and that’s still a hot topic, and I encourage you all who are reading this to go back to your existing client files and locate annuities that were written during the low-interest rate environment. You may be, as the TV commercial says, sitting on a gold mine!

This week, however, I wanted to highlight how annuities can be a huge component for wealth transfer and legacy needs that many of your clients and prospects are likely seeking – a death benefit guarantee that allows them to have peace of mind.

So, let’s look at what’s out there for you to help your clients build a legacy:
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Single Premium Life Insurance – in most cases, these products offer simplified underwriting and no exams. Our top carrier in this arena has an online application and quick online underwriting. These SPL products not only provide a tax-free death benefit – they also come with strong guarantees while your client is living. These benefits include a tax-free payout if the client develops a chronic illness or requires care at a nursing home. These products also provide a guaranteed return of premium features.

Now, let's take a look at annuities for a moment and how they can help provide a legacy for your clients’ beneficiaries. There's a new kid on the block per se, and this product offers an instant 40% guaranteed boost day one to your clients’ death benefit account value. What a way to open a conversation …
 
“Hey Mr. or Mrs. Client, I have a safe money product that protects you from the risk of market downturns and provides steady, safe growth when the market goes up – and by the way, this product comes with a 40% boost to your death benefit account value on day one!”

This fixed indexed annuity (FIA) comes with a 40% “boost” with no fees. The boost, a new twist on premium bonuses, allows the carrier to provide higher crediting (caps, participation rates) than a traditional premium “bonus” FIA.

This is just one of several fixed indexed annuities with strong death benefit guarantees built in. If you are looking for good FIAs with strong death benefit features, give us a call and we can help you navigate the FIA landscape and find the best fit for your case.

Now – let’s talk about annuity rates for a moment …

I know I may continue to sound like a broken record; however, I have come to realize that many agents, me included, are becoming used to these high interest rates and high premium bonuses on 10-year surrender FIAs, however it's important to remember that this is not the norm throughout history. Now is the time to set up periodic reviews and hammer home the safe money story!

Lastly, if you are reading this and looking for a way to generate new prospects – we have your back! We have an annuity lead program available to Ohlson Group agents and continue to see success in this program. One of the lynchpins of our lead program is the branding we provide.

Any agent who writes business with Ohlson Group is automatically enrolled in The Safe Money Places Agent Network. In the independent producer space, having a National Brand that has been around for over a decade is meaningful. There’s no cost to join and we can build you a Safe Money Places-themed website, just by submitting your annuity and life business through Ohlson Group.
 
So, feel confident knowing that you can be the hero in this retirement adventure! You’ve got the shield —which is the FIA that protects clients from risk of loss and provides tremendous upside potential. You've got the Swiss army knife product which is single premium life insurance. And you've got the backing of a national brand, The Safe Money Places Agent Network. Be the knight in shining armor and capitalize during this high-interest rate environment.

These rates won’t last forever – so go out and make a difference in someone’s life by protecting their hard-earned nest egg.

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.