Fixed Annuities & Indexed Annuities

Selling annuities can offer numerous advantages in today's insurance industry, allowing insurance professionals to fulfill their clients' financial security and peace of mind objectives. While you may already provide a range of insurance products, exploring the sale of annuities can be highly beneficial. These financial tools offer a plethora of advantages that align with your clients' requirements for long-term financial stability and retirement planning.

Request details or give us a call today if you are looking for the right support to help increase your annuity sales. We look forward to helping you reach a higher level of success.

Annuity Carriers We Proudly Represent:

A fixed annuity is a type of annuity contract that provides a guaranteed, predetermined rate of return on the invested principal over a specified period. It is a popular retirement savings option, often used as a financial tool to provide a stable and predictable income stream during retirement. Here's an overview of fixed annuities:

How Fixed Annuities Work:

Purchase Phase: To start a fixed annuity, an individual (the annuitant) makes a lump-sum payment or a series of payments to an insurance company. This is known as the premium.

Accumulation Phase: During the accumulation phase, the insurance company invests the premium in conservative, low-risk assets such as bonds or other fixed-income securities. The annuitant's money grows on a tax-deferred basis, meaning they don't have to pay taxes on the earnings until they begin to withdraw funds.

Guaranteed Interest Rate: The hallmark feature of fixed annuities is the guaranteed interest rate. The insurance company promises to pay a fixed rate of interest on the annuity's value for a specified period, usually ranging from one to ten years or more. This guarantees a minimum rate of return regardless of market fluctuations.

Annuitization Phase: When the annuitant is ready to start receiving income, they can choose to annuitize the annuity. Annuitization converts the accumulated value into a stream of regular payments, which can be received for a set number of years or for the rest of the annuitant's life, depending on the chosen payout option.

Payout Options: Fixed annuities typically offer several payout options, including a fixed period (payments for a set number of years), life-only (payments for the annuitant's lifetime), or life with a period certain (payments for life with a minimum number of years guaranteed). The payout amount is determined by the annuity's accumulated value, the chosen payout option, and the annuitant's age at the time of annuitization.

Advantages of Fixed Annuities:

Safety and Guarantees: Fixed annuities provide a guaranteed rate of return, ensuring that the annuitant's principal is protected from market downturns and that they will receive a minimum level of income during the payout phase.

Tax-Deferred Growth: The earnings on a fixed annuity grow on a tax-deferred basis, allowing the annuitant to postpone paying taxes on the gains until they start withdrawing funds. This can be advantageous for those in higher tax brackets.

Steady Income Stream: Fixed annuities offer the option for a predictable and steady income stream during retirement, which can help with budgeting and financial planning.

No Contribution Limits: Unlike retirement accounts like IRAs and 401(k)s, there are no contribution limits on fixed annuities, allowing individuals to contribute larger sums of money if desired.

As with any financial product, it's essential to carefully consider individual financial goals, risk tolerance, and personal circumstances before purchasing a fixed annuity. Consulting with a qualified financial advisor can help individuals make informed decisions tailored to their specific needs and objectives.

Annuity Resources:

MYGA Cross-Marketing letter for Medicare clients (Sample):

A Field Marketing Organization (FMO) specializing in annuities is a key player in the insurance and financial services industry, serving as an intermediary between insurance carriers or financial institutions and independent agents or financial advisors. An Annuity FMO offers critical support to agents and advisors focused on selling annuities, which are financial products designed to provide a stream of income for clients during retirement. Here are the primary functions and roles of an Annuity FMO:

Product Expertise: Annuity FMOs provide agents and advisors with in-depth knowledge about various types of annuities, such as fixed annuities, variable annuities, and indexed annuities. This knowledge enables agents to assist clients in selecting the most suitable annuity products.

Carrier Contracts: FMOs assist agents in contracting with multiple insurance carriers or financial institutions that offer annuities. This broadens the range of annuity products agents can offer to clients.

Education and Training: Annuity FMOs offer ongoing education and training programs to ensure agents stay current with the latest annuity products, regulations, and sales techniques.

Sales Support: They often provide marketing materials, sales tools, and guidance on effective strategies for selling annuities.

Commission Management: Annuity FMOs assist agents in tracking and managing commissions, ensuring agents are fairly compensated for their sales efforts.

Compliance Assistance: FMOs help agents navigate regulatory requirements and compliance issues related to annuity sales.

Market Insights: They may provide agents with market insights, trends, and data to help them make informed decisions and adapt their sales strategies to changing market conditions.

Client Support: Some FMOs offer post-sale support to clients, helping address their questions and concerns related to their annuity contracts.

An Annuity FMO plays a crucial role in helping agents and advisors serve their clients by offering comprehensive product knowledge, compliance guidance, marketing support, and a broad range of annuity options. This support benefits both the agents and their clients by ensuring that annuity sales are conducted ethically and professionally, leading to well-informed investment decisions for those seeking retirement income solutions.