What's Hot In Fixed Annuities

The owner can also withdraw 100% of the accumulated interest at any time or have monthly interest checks sent to a preferred location. If something happens and the owner needs more monthly income, the insurer will waive all charges if the owner accepts a 5-year or longer payout option.

Remember, the more the agent sells, the more money the agent makes. The easier the contract is to read and understand, the more the agent sells. And, the easier it is to purchase the contract, the more the agent sells. Example: use a one-page application and a one-page disclosure form. A 4-plus page application, as used by some companies, is absolutely ridiculous.

Furthermore, if all the hidden "snakes" are removed from the contract, the insurer will be sued less often, reducing the need for so many in the home office legal department.

Small: I prefer small, lower-rated insurers because they are hungrier for my business and much easier to work with. If there is a problem, you can find someone to solve it. Generally, small companies have much less turnover in staff than large companies, so long-term working relationships can be formed. And, they have live people answering the phones. Large companies have huge rule books to follow and if something isn't written in the book, they don't know how to solve the problem.

Big, famous companies are like other celebrities–they often have a tremendous ego problem. They know it all and everyone else is beneath them. Speaking frankly, I only do business with big companies when absolutely necessary.

Chief executive officers should consider that, if they follow these simple tips, their premium will increase, which in turn, eventually increases profits, which means the CEO would receive greater rewards.

Just to be certain this is clear, if an insurer cuts out a lot of unnecessary expenses, such as exorbitantly high commissions, marketing and legal staff, and if the insurer then puts the savings into the rate paid to policy owners in "gimmick-free" contracts, the company will end up making larger profits. Return on equity will be higher, making it easier to raise capital in order to increase business even more.

As certain as the sun rises in the morning, the ingredients that sustain life in the insurance business are: integrity, safety, stability, a fair return paid to policyholders, and need for the policies offered. It's a sad trend to watch so many well-known companies forget that. However, their memory lapse creates opportunity on which brighter, younger companies can capitalize.

Danny Fisher, CLU, ChFC, is founder and principal of The Fisher Agency, Dallas, and publisher of Fisher Annuity Index. His e-mail address is [email protected]