SELL ANNUITIES AND GET PEOPLE SECURED FOR LIFE

2007-03-08 10:33:40

( Financial )



Are you a financial advisor or an insurance agent who have clients whose life insurance application get disapproved due to non-insurability by reason of age or medical condition? Don’t despair. If your clients cannot qualify for life insurance coverage but are concern to have sufficient income stream during old age, then it might be time for you to sell annuities and get them secured for life.

An annuity is a specified sum payable at regular intervals for a stipulated period of time. It entails a purchase of future income, a systematic accumulation of cash which would be distributed at a later date in accordance with the annuitant’s desire.

Although it offers the same risk protection as life insurance, an annuity is not similar to the latter due to the nature of its terms. If in the purchase of life insurance you require clients to regularly pay premiums for a good number of years, you only need your clients to pay a single premium when you sell annuities. Your client gets monthly annuity payments immediately after buying the annuity, or at a specified future date either for a stipulated period of time or for life, in exchange for a premium that is paid once.

Just like a life insurance plan, your client’s dependents will still receive benefits in case of untimely demise. However, in annuity plan, the appointed beneficiary, called successor-payee, receives only the remaining annuity income instead of the whole amount that a life insurance beneficiary receives.

Since in their twilight years your clients are bound to face the risk of outliving their income or financial resources due to unexpected longevity, your diligence to sell annuities today could spell a big difference in your clients’ retirement age. After all, it is never too late to prepare for a well-deserved decent and comfortable retirement.


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