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Selling Annuities? Aim at Baby Boomers

Posted by www.psmbrokerage.com Admin on Tue, Apr 30, 2019 @ 08:22 AM

Selling Annuities - Aim at Baby Boomers

By Chris Conklin – ThinkAdvisor – April 30, 2019

76,000,000. That hefty number – 76 million – is the number of Baby Boomers living today in the United States. As an agent, it’s important to consider how annuities can be an important part of a Boomer’s retirement. There are solid reasons to focus on selling to this particular group. Boomers are at the perfect age to benefit from the consistent income stream annuities provide. And, put simply, no other financial products have been developed at the moment that offer the unique value for investment that annuities do. What should you keep in mind as you talk to your clients about which financial vehicles to choose? In regard to annuities, there are numerous benefits: safety, flexible time frame, tax deferral and shorter surrender charge periods.

(Related: 4 Reasons Selling Annuities Is a Stable Strategy)

You have likely already considered the benefits that annuities can offer to boomers, so it may seem like a novel idea at first. But there are solid reasons to focus on selling to this particular group. Boomers are at the perfect age to benefit from the consistent income stream that annuities can provide, among other benefits I’ll mention below. And, put simply, no other financial products have been developed at the moment that offer the unique value for investment that annuities do. As a result, annuities shouldn’t be overlooked as part of your selling strategy.

It’s important to remember that clients are looking to you to provide an asset accumulation approach that is reliable and will succeed no matter what happens in the stock market. Thus, your approach should include safe options that offer clients what they want most: stability. Because of this, annuities are a strong option that will earn clients’ trust and grow your business at the same time.

Why Baby Boomers?

While annuities offer benefits to clients no matter what their age, boomers are at the stage in their life where they are demanding greater principal protection. This growing demand largely stems from the fact that they are coming closer to the end of their working years, thus they are becoming more financially conservative and can’t afford to lose what savings they’ve accumulated. With their preferences shifting, there is a growing convergence between what they want and what annuities offer.

Thus, more of their asset allocation should be to safer products such as annuities. As they approach and enter retirement, the question becomes what to do with the growing portion that they want to keep safe. Boomers are major investors in mutual funds, but the unpredictable nature of the markets are likely causing increasingly cautious baby boomers to think twice about their existing asset allocation, one that can lead to losses during periods of market volatility.

A major benefit of fixed and indexed annuities is that they are not directly tied to the stock market and are protected from downward swings. This makes annuities an increasingly attractive option for your boomer clients, since they are not susceptible to loss when the market is in turmoil. With interest rates higher now than they were a few years ago, annuities give clients a solid interest rate, along with the safety and protection they seek. Money market funds generally can’t keep up with the interest rate of an annuity, and while bond mutual funds sometimes offer adequate interest rates, they don’t provide the security or protection annuities do in case of market turmoil. Bond mutual fund balances fluctuate daily, whereas annuity values do not.

Approaching the Annuities Conversation

What should you keep in mind as you talk to your clients about which financial vehicles to choose? In regard to annuities, there are numerous benefits.

  • Safety: Annuities can provide superior safety over other financial products. That’s because in a fixed or indexed annuity, both a client’s original premium and any credited interest are contractually guaranteed not to lose value unless surrender charges apply. This reassurance can help provide clients the peace of mind that they are truly protected from risk.
  • Flexible Time Frame: The shortest annuity period is three years; the longest is 10. This benefits clients because they don’t have to keep shopping for investment options and moving their money around from one certificate of deposit to another every six months. They know what to expect for a fixed time frame and can prepare based on that.
  • Tax Deferral: Annuities offer control over when they’ll receive taxable income. In an annuity, as long as clients leave money in the annuity, they won’t have to pay taxes on the interest that is credited to their annuity.
  • Shorter Surrender Charge Periods: Newer annuities not only have shorter surrender charge periods (such as three, five or seven years, instead of 10), but also now often have similar interest, cap and participation rates as the longer products. The flexibility of surrender charge periods has given rise to issue age flexibility — many clients in their 80s and even 90s can now buy an annuity.

For clients who are becoming uncomfortable risking their money in the stock market, annuities provide a stable solution.

Annuities lock in growth without constant monitoring. Annuities offer a simple and safe option that doesn’t require constant upkeep. They guard against the psychological shock of market dips and having to watch a nest egg evaporate with every market move. The end result: annuities are simply one of the best ways for baby boomers to strengthen a portfolio that needs protection and stability.

Source: https://www.thinkadvisor.com/2019/04/29/want-annuity-customers-try-baby-boomers/

Image: www.Canva.com

Additional Updates:

Tags: Annuities, Baby Boomers

Annuity Opportunities with Phoenix/Nassua Re

Posted by www.psmbrokerage.com Admin on Thu, Oct 25, 2018 @ 04:16 PM

We wanted to make sure you saw our exciting news ……

Phoenix/Nassua Re has the highest lifetime income AND The highest fixed 5 & 7 year annuity rates

~ Personal Income Annuity & Personal Protection Choice lifetime income went up, up, up!! Start income as early as 30 days after issue or spousal income on Qualified accounts – we allow both! The PPC Care benefit can cover both spouses on IRA rollovers which is a HUGE benefit to your clients.

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Nassua Re MYAnnuity MYGA fixed annuity rates 4.05% for 5-year term! This is a limited rate so act fast before it’s gone!! (MYGA approved in all states except CA, ME & NY)

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Plan now for the income and protection needed for your clients’ retirement.

Not appointed with Phoneix / Nassau Re? Request details here

Additional Updates:

Tags: Annuities, Fixed Annuity, income annuities, phoenix

4 Quick Tips to Becoming a Senior Market Insurance Top Earner in 2016

Posted by Carly Callahan on Thu, Jan 07, 2016 @ 02:49 PM

4 Quick Tips to Becoming a Senior Market Insurance Top Earner in 2016

Our friends at InsuranceNewsNet recently conducted a poll to find just what, exactly, the profiles of success in the insurance industry look like. While most of their readers reported to sell products traditionally associated with insurance, many of the top tier-earning producers tended to have practices that are slightly more hybrid. Lucky for you, Precision Senior Marketing has leveraged the data from INN to give our agents four quick tips to help you get closer to becoming a senior market insurance top earner in 2016.



1. Establish an efficient work environment

While many of the lower earners reported having worked out of their home and as a lone employee in their practice, the poll results show that working in an office with at least two to five people rather than from home and alone is a common trend among the top dogs.

This one goes without saying, but I'll say it anyway to emphasize: Spending enough time in your work and career is crucial to becoming a top earner in the senior market insurance industry. So, burn that midnight oil and put in 40+ hours per week!


2. Fine tune your work ethic toward prospecting efforts

While many, if not all, readers reported a vast majority of their business to have derived from referrals, we could not stress enough how important it is to keep in touch with your current clients. With 55% of online users age 65 and over using Facebook in 2014, it is essential for you to create a Facebook Page to service and retain those existing clients. The smallest of interactions, like dropping by a client’s Facebook to post a comment celebrating another rotation around the sun, helps emphasize your appreciation for their business. Not only will your Facebook Page improve the overall client experience, but also serve as a solid foundation for prospects to gain insight toward your role as a senior market insurance specialist. If social media isn't your thing, be sure to send out a birthday card to your clients and give them a ring every once in a while.

Other ways that the top earners generate new business include forming strategic alliances with attorneys, CPAs or other financial professionals. Think outside of the box!


3. Invest more time and money into your career

While the poll results show that you can expect to hold your insurance license for about 10 years before hitting the $100k mark, there are measures you can take to help get you there at a significantly faster rate.

For example, you could diversify your portfolio by adding an array of life insurance products such as term, universal, whole from the senior market insurance industry's leading carriers.

Annuities wouldn't be a bad idea, either.

If you haven't already considered this option for the near future, you might want to look into attaining your Series 6 license, which allows you to sell variable products, like variable annuities, variable universal life insurance and variable life insurance.

According to the poll results from top earners, it's also safe to say that it certainly helps to obtain at least a few designations (i.e. Life Underwriter Training Council Fellow or Chartered Life Underwriter).


4. Partake in extra curricular activities

Many of the top earners in the poll reported high involvement with industry groups. So, join NAIFA and get out there! Network with colleagues who face similar challenges as you. See what they have to say.

It's also advantageous of you, as a senior market insurance specialist, to hold informational seminars. This will not only help with prospecting, but will also assist in displaying your genuine care and concern for educating the senior market.

If you're interested in learning more about what it takes to be a top earner in the senior market insurance industry, feel free to give one of our expert marketers at PSM a call today at + 1 (800) 998-7715. It would be an absolute pleasure to assist you in reaching an all-time high in your production. :)

To read up on the original InsuranceNewsNet story, please visit: http://www.insurancenewsnetmagazine.com/article/profiles-of-success--what-it-takes-to-be-a-top-earner-3027#.Vo7kJbHnaB8

Sources: www.insurancenewsnetmagazine.com

Additional Updates:

Tags: Annuities, Insurance Agents, Life Insurance

Penalties for Seniors Who Delay Filing for Medicare

Posted by Lauren Hidalgo on Fri, Feb 03, 2012 @ 09:05 AM

Medicare SupplementsAs you are talking with seniors just aging into the Medicare market, it is important to advise them about the penalties they will pay if they do not sign up for Medicare Part B at the right time. For those seniors who have already filed for Social Security, they will automatically be enrolled in Medicare at age sixty-five. However, seniors who continue in the workforce, either by choice or necessity, and delay their Medicare coverage need to notify Medicare of their decision. Otherwise they will face a 10% Part B penalty for each year that they do not file. So someone filing for the first time at age seventy will face a 50% Part B penalty. The penalty is permanent and can translate into thousands of dollars in unnecessary penalty charges.

For your clients who decide to continue working, advise them to notify Medicare of their decision as soon as they turn sixty-five to ensure they will avoid penalties later. Especially, those seniors who work at a company with over twenty employees, as their employer will continue to provide their benefits. They can do this by choosing the option on the back of the Medicare card that is sent, calling the Social Security Administration, or visiting the SSA website. For their Part D prescription coverage, seniors can delay filing as long as their employer provides equal or better coverage.

Those seniors earning more should also be informed about the surcharges on high-income seniors. Currently, this affects only 5% of seniors, however those still in the workforce are more likely than those retired to fall into the income bracket. The extra charges can be applied not only to Part B, but also Medicare Advantage and Part D coverage.

Advising your prospects of these penalties is great for client retention and relationship growth. While they continue to receive their healthcare from their employer, you can work with them on their final expense, long-term care, and annuity needs until they require a Medicare Supplement.

Please give us your feedback!
Do you have clients who didn't know about these penalties and have suffered inflated costs due to delaying? How do you go about avising your clients who want to delay their Medicare benefits?

Source: KHN

Additional Updates:
  • • New Medicare Supplement from Stonebridge Life - Learn More
  • Sentinel Life Personal Choice Annuity Released in OR & MN - Learn More
  • Freedom is Here with Forethought Freedom Final Expense - Learn More
  • An Exciting New Short Term Care Plan from MedAmerica - Learn More
  • UnitedHealthcare Code Of Conduct/Conflict Of Interest Policy Awareness - Learn More

Tags: United Healthcare Medicare Supplement, Final Expense, Annuities, Senior Market Advice, Medicare Discussion, health insurance news, industry news, Stonebridge Medicare Supplement

Annual Enrollment Period is Over, What's Next?

Posted by Lauren Hidalgo on Fri, Dec 16, 2011 @ 09:06 AM

Medicare SupplementsThe whirlwind of the Annual Enrollment Period ended December 7. As you catch your breath and prepare to enjoy the holiday season with your family and friends, you might find yourself wondering now what? Now is an ideal time to start planning for 2012 and there are many opportunities to take advantage of.

Unlike Medicare Advantage plans, Medicare Supplements can be sold at any point during the year to those who are age sixty-five or older (or those on Medicare disability).

Also the first quarter of 2012 is a great time to contact the new clients you signed up during AEP to see if there are any other products they would like to take advantage of such as:

By adding additional products to your portfolio you are helping to make your business well-rounded, increase your sales volume, and offer another way to market to your prospects and clients. Plus the more policies your clients have with you, the more likely they are to keep their business with you as their agent.

As we wind down 2011 be sure to take a good look at your portfolio and make sure you have the products you need to serve your clients. PSM will continue to bring you the newest in Medicare Supplements with low rates and excellent compensation to help you maintain growth in your business.

Please give us your feedback!
What are you doing in preparation for 2012? Do you have any tips for those agents just getting started in the senior market?

Additional Updates:
  • Forethought Med Supp Released in Arizona - Learn More
  • Forethought Med Supp Released in New Jersey - Learn More
  • Heartland National Life Rate Increase Notification - Learn More

Tags: Final Expense, Annuities, Medicare Supplement, Heartland National Medicare Supplement, Customer Service, Building Client Relationships, Short Term Care

Stay on Track During the Annual Enrollment Period

Posted by Lauren Hidalgo on Fri, Oct 28, 2011 @ 08:57 AM

Medicare SupplementsJust a reminder, the Annual Enrollment Period (AEP) has been moved up this year and started October 15 and goes through December 7. During this time your clients will be able to switch their Medicare plans, effective January 1, 2012. Make sure you are prepared to meet their needs and the demands at the height of the season. Following are a few tips to keep you on track during AEP.

  • Make sure your certifications are up-to-date for 2012. With Medicare Advantage plans you need to certify every year. If you would like instructions on how to do so for each company please call your marketer at 1-800-998-7715. With the exception of United Healthcare, there are no required certifications for standardized Medicare Supplement product.

  • Electronic applications. The Sentinel Life E-App was released a few weeks ago, and E-Apps are also available with Mutual of Omaha and Universal American Medicare Supplement products. Electronic applications are available around the clock and allow for less mistakes and quicker processing times.

  • Underwriting. When not using an electronic application, it is vitally important that you are very thorough in your field underwriting with paper applications. These apps are getting a bit more complex every year and with the volume of sales that come through during this period, nothing will delay your issue times more than submitting incomplete applications. This bogs your business down, frustrates your clients, and prevents you from utilizing time spent cleaning up apps to prospect for new clients.

  • Identify the best rates. Several companies took increases in multiple states in the past few months. Plan ahead and check out which company has the most affordable rates in the areas you plan to prospect. To review who has the best rates in the states you sell, contact your marketer at 1-800-998-7715 for details.

  • Distribute marketing materials. Senior centers, churches, and other public spaces where seniors often go in your community are wonderful places to put some of your personalized brochures. These have your name and number and offer additional information to educate interested seniors. You can also mail lead cards using a very affordable mailing list generated from USA Data.

  • Request referrals. Now is the ideal time to see if your happy clients know anyone going through the AEP season. They might have friends and family who are confused and overwhelmed, looking for an agent who can help educate them on the best plans for their health and economic means. Don’t miss out on this opportunity!

Precision Senior Marketing will be here to support all of our agents during the Annual Enrollment Period. If you have any questions or concerns, please contact your marketer today at 1-800-998-7715 and they will be happy to assist you.

Please give us your feedback!
How has the AEP season being going for you so far this year? Do you plan to change anything going forward? Do you have any tips for those in the midst of their first season?

Additional Updates:
  • Forethought Life Med Supp Released in Missouri - Learn More
  • Forethought Freedom Final Expense - Learn More
  • Deliver the Best Rates with Sentinel Personal Choice Annuity - Learn More
  • Attention Agents: HOT New Med Supp Carrier - Learn More

Tags: Final Expense, Annual Enrollment Period, Annuities, Sales Tips, Senior Market Advice, Forethought Medicare Supplement, Sentinel Life Medicare Supplement, Customer Service

Annuities: The Other White Meat

Posted by Richard Ybarra on Thu, Mar 12, 2009 @ 02:17 PM

Retirement Fund

Like pork, annuities have long been misunderstood by the public and have stood in the shadow of a more prominent retirement product – mutual funds (think chicken).  However, the combination of a frail stock market, a severe recession, and millions of Americans nearing or entering retirement has created a new focus on creating guaranteed retirement income.  

Make no mistake, annuities are more difficult to fully understand than most other traditional insurance products and involve higher fees, however, the benefits often offset the higher barrier to entry. In the short term, consumers holding annuities see little to no loss during stock market downturns, especially if they have a safety rider.  Over the long term, they can have a guaranteed income stream in retirement that can be life saving. Depending on the specific product, annuities can be withdrawn without penalty in certain circumstances, such as for medical emergencies or urgent need for nursing home care. Additionally, other annuity products can pay out benefits to a holders’ beneficiary upon death similar to a final expense product.

Due to the complexity of annuities, it’s best to contract with an organization whose sole focus is on annuities.  For this reason, we have partnered with The Annuity Shoppe to offer contracting for annuities.  With more than 60 years of combined staff experience in the industry, The Annuity Shoppe continues to successfully provide agents with everything they need to be successful in the annuities market. 

As we’ve said before, enhancing the diversity of your portfolio is crucial to business development.  Adding annuities to your portfolio may seem like it may fall outside the scope of your business, but you may be surprised at how complementary a product it can be upon further research.  With more and more risk-adverse consumers (which probably describes the vast majority of your clients in these times) inquiring about this increasingly popular product, your time would be well spent exploring the possibility of offering annuities to your clients.

Learn More

Tags: Annuities, Fixed Annuity, Annuity Information

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