It’s Annuity Awareness Month! Let’s Sell Some Annuities!
If you’ve been sitting under a rock for the last year, you may not have noticed all of AIP Marketing Alliance’s communication about how the annuity market has been red-hot for the last 12 months. If you don’t believe us, let’s recap what you may have missed in your time spent under that rock.
AIPMA shared a lot of annuity trends in blog posts, emails, and social media posts during the last 12 months, and our entire team is preparing for even more new annuity business as June kicks off Annuity Awareness Month. Let’s start the “Why You Should Be Selling Annuities” conversation with some nationwide statistics.
According to LIMRA, total 2023 first quarter annuity sales were $92.9 billion, which was a 47% increase from prior years and set an all-time quarterly sales record. Based on these trends, LIMRA predicts annuity sales to top $300 billion this year.
- Every fixed annuity product line recorded at least double-digit growth and achieved record quarterly sales. (Note: directly from LIMRA, as we don’t use “every” in a lot of annuity blogs and posts)
- Fixed Indexed Annuities (FIA) sales were $23.1 billion – up 42% from Q1 2022, with LIMRA forecasting FIA sales to grow as much as 10% overall in 2023
- Single Premium Immediate Annuity (SPIA) sales were $3.3 billion – up 120% from Q1 2022
Uncertainty and inflation increases have dealt a heavy blow to consumers’ retirement accounts connected to the market. Fluctuation is a common term AIPMA has utilized during the last 12 months, as losing retirement dollars has opened up opportunities in the annuity market.
Let’s talk about a few observations from AIPMA’s side of the fence.
- Multi-Year Guaranty Annuities (MYGA): Based on AIPMA’s contracted insurance carriers, a majority have a three-year or five-year product that has a locked-in rate above 4% over the selected term, with some still holding at 5%
- Fixed Indexed Annuities: Some fixed indexed annuities may generate a higher rate of return (10+%) based on the FIA’s index/indices; consumers could benefit from a higher return on the annuity without the risk of losing their principal
- CD Rates: Let’s do a short-term accumulation play with some simple math in a hypothetical example – if your client has $100,000 and they want guaranteed accumulation for three years, would the client select a CD with a 2.0% interest rate, or would the client choose a MYGA annuity with a 5.0% guaranteed rate? All you have to do is show the numbers…
- Guaranteed Lifetime Income: How many financial products can state they will provide a guaranteed lifetime income (translation – money until the person dies) for the rest of your client’s life or until a specific age in the 100s? ANSWER: AN ANNUITY
You also can share the many reasons people buy annuities with your clients and prospects, including guaranteed lifetime income (we love that term); tax-deferred growth (client doesn’t pay taxes until a withdrawal occurs); protection from market volatility; premium protection (upside potential with no risk of loss); death benefit; optional long-term care riders; and keeps pace with inflation.
Can the stars align better during Annuity Awareness Month for AIPMA’s independent insurance wholesalers and agents? It sure can. Our staff has developed multiple materials to get your agents started selling annuities.
We provide the six steps needed to get started, understanding the differences between annuity products through our training modules, get contracted with more than 30 annuity carriers, review specific carrier training links and resources, and AIPMA also has access to compare multiple annuity products through its Agent Tools section of the AIPMA website. You’ll also get emailed MYGA rates every Monday. You’ll also want to see the commission compared to a life insurance sale.
AIPMA also understands June usually is earmarked for vacations, spending time at the beach, s’mores on the bonfire, and figuring out how to keep the children busy without the daily grind of school. It’s also a great time to look into adding annuities to your sales portfolio as more consumers are looking to protect their hard-earned retirement dollars so they can help their children and loved ones financially down the road while enjoying those golden years too.
Want to start selling annuities? Contact AIPMA’s Business Development team at (800) 783-5206 Press #2 or firstname.lastname@example.org, as our experienced staff can guide you through the required licensing, contracting, processes, training, and commission levels.
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For more than 40 years, AIP Marketing Alliance (AIPMA) serves as a premier life insurance and annuity distribution partner to provide full-service support to independent wholesalers, brokerages and agents from our Troy, Michigan office. Copyright 2023