The annuity industry is not young, nor is it an easy one in which to work. With the preponderance of new and emerging product lines and features, it's difficult to keep up, as with many markets. There is, however, a great need for products that provide income for retired consumers.
And with that need comes a demand for advisors who can offer, sell, and educate clients on these products.
According to a 2008 survey conducted by Agent Media (publisher of the Agent's Sales Journal), the National Association for Fixed Annuities (NAFA), and NAVA (The Association for Insured Retirement Solutions), 76 percent of agents sell the most annuities to consumers in their 50s and 60s -- in other words, baby boomers.
Retired consumers, especially in the wake of vanishing pension plans and lengthening life expectancies, have always needed an outside income source to maintain their lifestyles and pay for unanticipated expenses. Carriers are working hard to meet that demand. Now, more agents seem likely to begin filling that void, with the casual annuity producer taking more advantage of the growing opportunity and agents offering other products eyeing the chance to help their clients not only protect their assets but use them in a way that helps them protect their financial futures.
To help our readers explore this field, we've put together our third annual Annuity Sales Guide, anchored by the 2008 Annuity Study. The results of this year's survey show how annuity agents have performed over the past 12 months, their outlook for the next 12 months, and their selling habits, challenges, and viewpoints on important industry issues.
Following the study results, we present the 2008 Annuity Company Rankings, where the top carriers are ranked in a variety of categories, including the coveted prize for best meeting agents' overall needs. And the Annuity Sales Guide shows current and aspiring annuity producers how to combat negative media attention, who to partner with for maximum market penetration, and where to go from here.
Disability happens
Each May, the Life and Health Foundation for Education (LIFE) sponsors Disability Insurance Awareness Month (DIAM). According to the LIFE Web site, "Though disability is behind nearly half of all mortgage foreclosures and a significant number of personal bankruptcies, insuring against it has not been a high priority for most workers because many assume they're already covered through Social Security, state-mandated workers compensation or employer-provided group plans. However, there are numerous holes in this safety net of coverage."
Disability income insurance costs relatively little when compared to the benefits it delivers. Larry Schneider of the International DI Society discusses the various definitions of disability found within contracts. As it's important to understand which claims may be denied or accepted, any reader interested in offering this coverage will want to take a look at this month's special feature.
Critical need for CI insurance
Heart disease. Cancer. Strokes. They're well-known as the three most common critical illnesses to strike Americans at any point in time. Nobody knows what the future brings, yet we cannot afford to pretend it will keep us healthy forever. Even if we are covered under health insurance, that may not be enough to pay medical and living expenses while we recover from a critical illness.
Insurance and other financial offerings are protection against the unexpected. Annuities provide income in the event that your clients have not saved enough to cover their remaining years in retirement. Disability income insurance provides a safety net should disabilities render consumers unable to work while leaving them under-covered by other plans. And critical illness fills the gap when health insurance is not enough to pay for clients' treatment. This month's features will help you understand these products so you can convey the need to your clients and help them choose the right one.
Sincerely,
Christina Pellett
ASJeditor@AgentMediaCorp.com
