If it has been a few years (or even a few months) since your last annuity case popped up, you may be surprised at how much the landscape has changed. Fixed annuity rates are more competitive than they have been in years, and both clients and advisors are seeing the benefits. According to ThinkAdvisor.com, fixed annuity sales are up an astonishing 45% since Q2 2021! Fixed-rate deferred annuities are seeing a large share of the action, with sales increasing 76% year over year.
If you are not actively marketing and considering fixed annuity solutions for your clients, you may be leaving sales on the table.
Multi-Year Guarantee Annuities (MYGAs) – A Competitive Alternative
For clients looking for shorter-term guaranteed returns, three (3) and five (5) year guaranteed products are extremely competitive. They offer better rates than bank CDs with the additional advantage of tax deferral. MYGAs are a great option for your conservative/moderate risk client who is looking for a safe place to park their money for a few years with an attractive combination of risk and opportunity cost.
Fixed Indexed Annuities (FIAs) – More Attractive
In fact, the cap rates for many S&P 500 account options are twice as high as they were at this time last year! More and more carriers have also added alternative indexed account options that can provide uncapped growth potential. Lifetime income riders are making a comeback as well, providing flexible options for guaranteed income regardless of underlying performance, while the client retains access to policy cash value.
Income Annuities – Immediate and Deferred
Income annuities are also seeing the benefits of increased interest rates. The idea of a guaranteed income stream is likely appealing to many of your clients. Do your clients have:
- An old life or annuity policy that isn’t meeting their needs?
- Assets that have grown, and want to lock in those gains by turning them into an income stream that they cannot outlive? Income annuities, with a variety of guarantee options, may be the answer!
- Do they have qualified funds, but no need to access them? A QLAC could help defer a portion of their RMDs.
Click here to see a snapshot of current MYGA, FIA and SPIA rates and please contact AgencyONE at 301.803.7500 to see how a fixed annuity could be the solution to helping your clients achieve their goals.