DMI | Annuity, strategy, Annuity Awareness Month
June is Annuity Awareness Month, making it the perfect time to educate your customers on annuities and their benefits. Here are some of the factors to be aware of when educating your clients.
A key step in the retirement income strategy is to help maximize your clients’ income. Understanding what your clients are looking for in retirement products can help you to better align your messaging for products and features to match their preferences.
Address Specific Benefits
Every client has different priorities when it comes to retirement, so it’s important to help your clients understand exactly how an annuity can provide the value they’re looking for. This month is the perfect time to open up a conversation about what is important to your clients and how annuities can help.
For example, if lifetime income is a priority, then the relevant annuity benefit is to outline its lifetime income benefit options. If a client is looking for returns on investment, explaining how a purchased annuity isn’t a securities product and is not invested in an index, provides tax-deferred growth potential, protection from index loss, and growth opportunities is essential.
If the client’s priority is income adjusted for inflation, annuities can supplement their changing financial needs with an income stream guaranteed by the insuring company. Additionally, if a client is looking for the potential for growth, focus on how annuities protect principal from market decreases, and capitalize on indexed interest growth.
Why Lifetime Income is Important
Seniors’ life expectancies have greatly increased over the past 25 years, and these increases can significantly affect healthcare costs and retirement stability.
Annuities can help protect against risks in your client’s financial future, offer guaranteed death benefits, and provide payment options to meet income needs for retirement.
This allows the remainder of their assets to be invested as needed, for more growth potential to help protect against inflation, rising healthcare costs, and market volatility. In addition to annuities, other sources of guaranteed retirement income can include pension plans and Social Security.
The majority of financial products don’t provide lifetime income, but an annuity can turn assets into a source of steady income for clients no matter how long they live.
Growing your business is about attracting the right clients with the right offer, and we know what it takes to help you succeed. Give DMI a call today at (800) 322-6342 or visit our website to see our full range of services that can work for you.
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For financial professional use only. Not for public distribution.