Certainly, there are a lot of great reasons for your clients to buy a fixed annuity — here are five of the best. Are you positioning these benefits in your sales conversations?
Safety
Fixed annuities can ensure that if anything should happen to one of your clients, the surviving spouse has a source of continued income in place. This can help in case of a catastrophic illness or if a client (or spouse) would need to enter a nursing home.
Liquidity
Today’s challenging economy has heightened interest in liquidity. Many clients may hesitate to make long-term financial commitments without flexibility and access to their funds, including creating an income stream should they need it.
Tax Deferral
The tax benefits of fixed annuities play heavily in the minds of many clients. Because earnings will not be taxed until withdrawals are made or regular distributions start, clients benefit from triple compounding: earning interest on principal, interest on interest, and interest on tax savings.
Control
Another appealing aspect of fixed annuities is the ability for clients to choose a predictable income stream. Lifetime income options provide clients with the control of selecting payments that are guaranteed to continue for the duration of their life.
Wealth Transfer
Most financially conscious clients are keenly focused on what happens to their money after they pass away. Fixed annuities are a great avenue for providing security to loved ones in the event of a death. Annuities can help an estate avoid probate, allowing beneficiaries to receive annuity proceeds without delays and probate expenses.
