SilverSide Insurance Marketing exists to serve agents all over the nation by aiding in the seemingly never ending search for the right policy. This illusive ?perfect policy? for each client is always a task to find. Let us make your job easier and your clients happier. The first step as an agent is to know the products inside and outside. The following is a brief review of one type of investment and insurance product that is always being updated and improved: life insurance annuities.
What exactly is a life insurance annuity?
An annuity is a contract between your client and an insurance agency. The client purchases the annuity up front with either a single payment or a payment plan; the insurance agency then pays your client back in the future (sometimes immediately, however) with either a lump sum or a series of payments. There are three basic types of annuities: fixed, variable, and indexed.
Who are life insurance annuities for?
This type of policy is directed towards those heading into retirement or planning for a future retirement. An annuity provides income security and money balancing for the client. The benefits are that periodic payments can go to your client or your client?s family/spouse. If your client passes away, the payments continue to go towards the named beneficiary, still tax-free and with-drawable.
What types of life insurance annuities should I consider for my clients?
The three main types of annuities, fixed, variable, and indexed, are all meant for clients with different situations. Your client can decide to have to payments invested begin as soon as they deposit their money (immediate) or at a given date, such as retirement (deferred). These are non-taxable accounts which makes room for growth and compounded earnings.
- have a minimum rate of interest
- fixed, period payments
- regulations made by state commissioners
- have the option to direct your payments towards other investments (i.e. mutual funds, stocks)
- varying, period payments
- rate of return depends on amount of investment (at first or over time)
- regulated by the SEC
- have the ability to create combinations with other insurance policies and securities
- stock-market influenced payments (i.e. Standard & Poor?s 500 Index)
- regulated by the SEC
Remember to remind your clients that there are fees if they withdraw their investment before the age of 59.5, order additional special features, and any necessary fees for mutual funds or other stock-market involvement.
To summarize, annuities are very basic and easy-to-understand policies that will provide simple financial security for any of your elder clients. We would recommend other policies for younger clients or those who do not plan to fully retire. Give SilverSide a call to start working with us and expand your repertoire of products for your clients! 480.998.1286