Got an Extra $160,000? You May Need It

Whenever I read any phrase about the fear of outliving your money, annuities automatically pop into my mind — as I'm sure they do for most LIS readers. Annuities happen to be this main theme subject of our upcoming March issue, and we've got a variety of features with insight about the current environment for fixed index annuities, new research about potential annuity consumer segments and how to reach them, and a Producer Roundtable where elite annuity producers share sales strategies that are working right now.

As baby boomers — including many who have become significantly more risk-averse since the recession damaged their portfolios — realize that annuities can provide guarantees as well as a stream of income they cannot outlive, the products will continue to be attractive for retirement portfolios. With the low interest rate environment, continued worldwide market volatility, potential tax increases and the turmoil of a presidential election year, many boomers simply don't know what to do about their retirement savings accounts. They need well-informed advisors who can provide them with the best options to meet their goals, and annuity products will no doubt be an important part of the plan for many of them.

Yes, most annuities are complicated products with many "moving parts" that are not easily understood by consumers — or even many advisors. But advisors who are fluent in their product knowledge can effectively educate their clients about the flexibility and customizable features afforded by cutting-edge annuity product design. Optional income riders, for example, are now available on almost all fixed index annuities and are being elected by purchasers well over half of the time, according to LIMRA.

Check out our special section in the March issue, and go the extra mile by taking advantage of all the product training available to you from carriers and marketing organizations. The more you know, the more your annuity sales grow.