Choosing an Annuity for a $1,000,000 Investment

[kencan]

I met a businessman recently( two weeks ago) at the barber shop i frequent. During our conversation, he asked me if i sold annuities. I told him I did. I left a message on his phone re: AVIVA's Income edge plus product with the 7.20% guarantee. He returned my call. I gathered some information and we set an appointment for a week out.
My question is this. He told me he was looking to invest $1,000,000 into the annuity. His time frame is 10+years. He's 50 yr-old. Of course I will find out more about his situation next week.
My question is this. If this is legitimate, how wise is it to use just one annuity family. Should I be looking to diversify this asset into a few companies? Other than AVIVA?Thank you.

 

[Larry Tew]

I hope your "7.20% guarantee" was a typo.

 

[xrac]

It all depends upon what he needs in terms of an income stream and access to principle. One can laddering annuties to produce current income as well as create better access to principle. I personally would probably not place it all in one basket.

 

[bluemarlin08]

Did you really tell him there was 7.2% guarantee?

 

[Newby]

I'll take some of that 7.2% action.

 

[Tahoe Ray]

I think that your brochures are old and your positioning is off (as others have pointed out) but as Xrac mentioned, it is all about the client need. Using multiple products is important on many levels: company solvency, flexibility, product features etc. I would use as many carriers as necessary to accomplish his goals.

 

[Newby]

He's probably confusing an income rider factor with an interest rate.

 

[pcbinsurance]

Depending on how you explained the "7.2%" to the prospect (in your phone message), you've probably already lost this sale and also lost credibility.

 

[Tahoe Ray]

He's probably confusing an income rider factor with an interest rate.

The name of Aviva's income rider on one of their products is called "income edge plus". It just rolls up at 6%....not 7.2%. At least that is how it worked last week....

I'm not sure that I have the ability to properly explain an income rider in a voicemail though.

 

[kencan]

I mentioned it was a rider and that I'd explain it when we met.