Which product was it on?
Which product was it on?
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All good info on this thread. And also I point out that the quickest way to get yourself in a LOT of compliance problems is to ever call an annuity (unless it's a variable) an investment. You do this right on your thread title.
You won't ever see the word investment on any company material on indexed annuities or fixed annuities. They are NOT investments. The money is never invested and that's why they have no market risk and that's also why insurance agents sell them rather than investment reps AND best of all .... That's why the public likes them. Don't take the bet thing about them and try to describe it as something it's not.
You won't ever see the word investment on any company material on indexed annuities or fixed annuities. They are NOT investments. The money is never invested and that's why they have no market risk and that's also why insurance agents sell them rather than investment reps AND best of all .... That's why the public likes them. Don't take the bet thing about them and try to describe it as something it's not.
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Is is qualified or non-qualified?
Does he have a spouse?
Home many children/ grandchildren?
What other savings and investments does he have?
What are his liquid assets?
Does he have LTC coverage?
What is purpose for this money?
Does he need income?
Is he just looking for a safe place to park these funds?
Does he have life insurance?
Where is the funds coming from?
Does he have a broker?
How does he fell about his broker?
Where else does he get financial advice?
The solution is in the details. The more you can get from the client the easier it is to pick good product solutions and present it accordingly.
For a simple example: Aviva's Income Edge is 6% plus a doubler benefit - if the client is not concern about ltc and wants the best income in 10 years then AVIVA might not be in the running for one of the buckets. But, then again that could depend on if the client is looking for a joint payout or single payout.
There might be better options that you can present, but gathering the facts is the key.
$1 million is a nice size case that you can do some really great things for your client base on your product selection.
Good Luck.
Does he have a spouse?
Home many children/ grandchildren?
What other savings and investments does he have?
What are his liquid assets?
Does he have LTC coverage?
What is purpose for this money?
Does he need income?
Is he just looking for a safe place to park these funds?
Does he have life insurance?
Where is the funds coming from?
Does he have a broker?
How does he fell about his broker?
Where else does he get financial advice?
The solution is in the details. The more you can get from the client the easier it is to pick good product solutions and present it accordingly.
For a simple example: Aviva's Income Edge is 6% plus a doubler benefit - if the client is not concern about ltc and wants the best income in 10 years then AVIVA might not be in the running for one of the buckets. But, then again that could depend on if the client is looking for a joint payout or single payout.
There might be better options that you can present, but gathering the facts is the key.
$1 million is a nice size case that you can do some really great things for your client base on your product selection.
Good Luck.
Never lead with product before taking a fact-finder. Find out what he is trying to accomplish (max income, tax-deferral, estate planning, etc..). Putting it all with company would probably be a mistake. Also, his investment in annuities should not exceed 25%+/- of his investable assets. Avoid the temptation of selling product before you meet with him and find out about his goals. Make sure you do a risk tolerance questionnaire, as well. When you get a prospect like that, it is hard not to get excited and start selling. Good luck!
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Good fact-finding questions!
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Good fact-finding questions!
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Obviously, fact finding first. I think it would be important to address that he asked you about annuities. So he does have some knowledge...it is up to you to determine how much he knows and sometimes more importantly - how much he doesn't know.
What is his expierence with them? Good or bad. What would have changed or would like to repeat? What is he trying to accomplish with an annuity? What is his exit strategy -how long, how much needed, etc...
Why annuities vs some other type of investment?
I like to work backwards with annuities on a worse case scenario starting with his exit strategy and then compare this scenario vs other sceanrios within and apart from annuites. We eventually work back to the most appropriate vehicle that can get him to his goals best.
Side note:
I would consider dividing them up (maybe four strategies) as no one can predict which carrier/strategy will outperform in a given market. This is a way to diversify with VA's or IA.
What is his expierence with them? Good or bad. What would have changed or would like to repeat? What is he trying to accomplish with an annuity? What is his exit strategy -how long, how much needed, etc...
Why annuities vs some other type of investment?
I like to work backwards with annuities on a worse case scenario starting with his exit strategy and then compare this scenario vs other sceanrios within and apart from annuites. We eventually work back to the most appropriate vehicle that can get him to his goals best.
Side note:
I would consider dividing them up (maybe four strategies) as no one can predict which carrier/strategy will outperform in a given market. This is a way to diversify with VA's or IA.
