Thursday, June 2, 2016

National Annuity Awareness Month

Annuity Sales Continue to Climb, but Many Consumers Still Haven't Heard About Them!

The sales of fixed annuities continue to climb. In the LIMRA Secure Retirement Institute’s fourth quarter U.S. Individual Annuities Sales Survey, it also showed that fixed indexed annuities were up 32 percent at $16.1 billion.1

Why are people choosing fixed indexed annuities to meet their long-term goals and retirement needs? Why are annuity sales continuing to grow each quarter?

Fixed indexed annuities bring interest to some consumers because they include:
  • Opportunity for tax-deferred growth
  • Guaranteed* lifetime income
  • Protection of premium from potential market downturns
  • Built-in Flexibility
  • Growth accumulation 
Some consumers are interested in fixed indexed annuities because of these product features. It can provide useful benefits for people and offer protections against the different risks that could potentially deplete future savings. Financial professionals are also providing more education and awareness to clients so they are aware of what could happen to their principal if another market downturn took place.

As more people become aware of fixed indexed annuities, it gives financial professionals the  opportunity to share details about the products. It shows the importance of being transparent and ethical. Clients need to be aware of all fees, interest, and guaranteed* income payments from the start.
When this is done, it becomes easier to maintain a happy annuity base and continue to increase satisfied annuity clients. They are happy because informed retirement decisions are being made.

Partners Advantage has a library of consumer-ready articles, videos and resources you can use to educate your clients during
National Annuity Awareness Month and beyond.
Click HERE to Request National Annuity Awareness Month Information

Call the Partners Advantage Annuity Brokerage Team for complete assistance and access to resources:
888-251-5525, Ext. 709.

Partners Advantage is a Premier Partner of NAFA - The National Association for Fixed Annuities, which has pronounced June National Annuity Awareness Month.

1“LIMRA Secure Retirement Institute: Indexed Annuities Break Quarterly and Annual Sales Records,”, last accessed 3/21/16


*Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank of the FDIC.  A fixed indexed annuity can provide annuitization as a means to provide retirement income payments. An alternative option to annuitization could be the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged.

Tax-deferred interest accumulation offers no additional value if the annuity is used to fund an IRA under current tax law; additionally, tax deferral may not be available if the owner of the annuity is not a natural person such as a corporation or certain types of trusts.

Annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries. Please note that in order to provide a recommendation to a client about the transfer of funds from an investment product to a fixed insurance or annuity, you must hold the proper securities registration and be currently affiliated with a broker/dealer.  If you are unsure whether or not the information you are providing to a client represents general guidance or a specific recommendation to liquidate a security, please contact the individual state securities department in the states in which you conduct business.

This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney.