March 12, 2015
As wholesalers and agents, most of us are very familiar with the ins and outs of the S&P 500. On the other hand, clients are unlikely to be as familiar with the S&P index value or its trends. Below is a graph that shows historical S&P index values at inflection points over the past 20 years:
As the chart shows, we were certainly at a high point in 2014. However, based on the current rate environment and other economic factors, clients may not realize this. We have to let our clients know that no one can predict which way the market will go. However, one thing you can count on is that a fixed-indexed annuity will protect your clients’ money from the next, inevitable market decline.
Clients should be made aware that when they buy a fixed-indexed annuity, they own an insurance contract. They are not buying shares of any stock or index. All guarantees are backed by the claims-paying ability of the issuing insurance company
The attached PDF is a client-friendly flier that you can use as an educational tool to inform your clients about the versatility and importance of a fixed-indexed annuity.