As part of Annuity Awareness Month, AIP Marketing Alliance (AIPMA) is going to share multiple articles to assist you in discussing annuity options with your clients and prospects. This week, our team wants to point out some questions you may get asked during an in-person or online appointment.

In a recent blog by North American Company for Life and Health Insurance® (North American), the insurance carrier shares some information about different types of annuities as well as a couple of questions they encourage consumers to ask insurance agents and financial advisors before purchasing an annuity.

For this blog, AIPMA will not delve into the multiple types of annuities mentioned in the article (immediate, deferred, variable, fixed) as AIPMA focuses mainly on selling multi-year guaranteed annuities (MYGAs), fixed indexed annuities (FIAs), and fixed annuities (FAs). We also have some wholesalers who sell single premium immediate annuities (SPIAs).

The North American article covers some of the basic annuity questions including protection, when your clients can buy an annuity, advantages and disadvantages, taking withdrawals, and death benefit. North American also encourages consumers to ask the following questions to you, the financial professional (agent or advisor).

• Are there optional riders?
• What are the associated fees with this contract?
• What are the ratings of the insurance company?
• How do you help your clients manage different types of risk?
• How often do you like to meet with your clients?
• How are you compensated?

AIP Marketing Alliance can help you answer these questions as our marketing team has created training, marketing, and sales resources to answer these questions for your clients and prospects. Our Business Development team can generate an illustration to compare multiple annuity products for your use in preparation for your appointments.

We also want to remind our valued independent insurance wholesalers and agents that an annuity is only one of the financial products that provides guaranteed lifetime income. An annuity also can protect against market volatility and decreases plus some annuities also have guaranteed rates (i.e., five percent annually over a specific number of years), which could make annuities attractive to your clients and prospects right now.

As one of AIPMA’s contracted carriers, North American also has multiple sales resources available to assist you in educating your clients and prospects on their multiple annuity products such as NAC Control. X(SM), Income Pay Pro(SM), NAC VersaChoice(SM) 10, NAC BenefitSolutions®, Performance Choice® 8, North American Charter Plus, NAC Guarantee Plus(SM), and North American Income®. Our team can send you a link to their dedicated annuity marketing portal with consumer-approved materials.

AIP Marketing Alliance is your sales and marketing resource for Annuity Awareness Month throughout June and year-round for your annuity sales needs. Questions? Contact AIPMA’s Business Development team at (800) 783-5206 Press #2 or marketing@aipma.com.

Disclaimer: The term financial professional is not intended to imply engagement in an advisory business in which compensation is not related to sales. Financial professionals that are insurance licensed will be paid a commission on the sale of an insurance product.

North American is responsible for the content of any material(s) they created, approved, or provided to this website. However, North American is not in any other way responsible for the accuracy of the information contained on AIPMA’s website. The information and opinions expressed herein are provided by third parties. These sources are believed to be reliable, but accuracy and completeness cannot be guaranteed by any provider of the information. Information is provided for informational purposes only and is not and should not be considered a solicitation to buy or sell any products mentioned. The information should not be used as the sole basis for any financial decisions, nor should it be construed as advice applicable to your specific financial situation. Please consult your personal financial, tax and/or legal professional(s) for guidance on your specific financial situation and decision-making.

Fixed index annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from the accumulation value for optional benefit riders or strategy fees or charges associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.

NAC Control. X(SM), Income Pay Pro(SM), NAC VersaChoice(SM), NAC BenefitSolutions®, Performance Choice® 8, North American Charter Plus, NAC Guarantee Plus(SM), and North American Income® are issued on base contract forms NA1015A/ICC21-NA1015A, NA1012A/ICC17-NA1012A.MVA, NA1012A/ICC17-NA1012A.MVA, NA1006A/ICC14-NA1006A, NA1007A/ICC16-NA1007A.MVA, NA1007A/ICC15-NA1007A, ICC21-NA1016A/NA1016A, and ICC18-NA1014A/NA1014A, respectively, or appropriate state variations including all applicable endorsements and riders by North American Company for Life and Health Insurance®, West Des Moines, IA. Product and features/options may not be available in all states or appropriate for all clients. See product materials and state availability chart for further details, specific features/options, and limitations by product and state.