If you work with older, high net worth clients, you have most likely uncovered the need for life insurance, either to provide estate liquidity or for the purpose of increasing a family legacy. Whatever the reason, a life insurance policy is a major purchase for older clients, often requiring the payment of large premiums for the remainder of their lives. While you wouldn’t recommend such a purchase for any clients who don’t have the income or the assets to comfortably cover the premium payments, you could greatly enhance the financial position of those who do with the use of a Single Premium Immediate Annuity (SPIA) as a funding source.
Retirees’ demand for more predictability and security in their retirement income has led an increasing number of financial advisors to look to annuities as way to provide more stability in their clients’ investment portfolios. They are also looking to annuities as a way to replace the third leg of the retirement income stool as a guaranteed lifetime income. Retirement planning occurs in different phases and at different stages of peoples’ lives. Depending on what stage of life a person is in, there is different kind of annuity that is best suited for their situation.
You’ve probably never heard anyone complain about their pension. That’s because it provides the certainty of knowing how much income they will receive and that it will last as long as they do. That kind of certainty is very difficult to replicate, which is what makes annuities so attractive.
Based on new data released by LIMRA regarding life insurance sales in 2014, the market for annuities is particularly hot. Increased annuity sales demonstrate that consumers are more conscious of how life insurance products can factor into their retirement planning strategy, but there are still signs that financial professionals need to market certain products more aggressively.
The sale of indexed annuities, one of the more popular long-term savings products lately, has now seen eight straight years of growth.
As a financial producer, you’re aware that one of the main concerns of your clients is how to efficiently and responsibly pass on their wealth, whether it’s to younger siblings, children or even grandchildren. While there are numerous ways your clients can leave inheritances, certain methods create more burdens than your clients would prefer.
Retirement concerns affect many Americans, including a large portion of high net worth consumers. Many less-affluent individuals are concerned about outliving their retirement savings. This is not a pressing concern for high net worth consumers, but they have their own financial concerns to contend with.