Look at Your Annuity Clients

Do you remember the Eveready Battery ad with Robert Conrad?  Where he pitches the product and the says “I dare ya”.  Well, this is my Robert Conrad – Eveready Battery moment …

Take a look at any your book of business, take a good honest look at all of your clients.  I dare you to not be able to find one client who does not own an annuity.  I dare ya.

According to the Insurance Information Institute, Facts & Statistics page, citing a LIMRA survey conducted in first quarter of 2018, almost $3 trillion in annuities are owned in America.  And, in 2017, more than $3 billion of deferred annuities were sold.

Despite the negativity about annuities that you may hear from certain people who share my last name (and are of no relation) …  annuities are popular financial planning tools and not all annuities are bad.

I am not here to defend annuities nor am I here to condemn them.  I am here to state the following: annuities can be a very useful tools in a portfolio when used properly; like everything else, they can also be a less than ideal tool.  In short, the best annuity is one that aligns with the long-term goals of an accumulation and income strategy.

Not every annuity is properly placed.  In fact, I am willing to bet that most retirement and income plans are not properly designed.  Simply, a majority of these plans (through omission or intentionally) neglect the real risk that an extended healthcare event poses – but that is another conversation.

At OneAmerica, our Care Solutions portfolio includes a strategy to turn tax-deferred accumulation inside of deferred annuities into tax-free distributions when used to long term care.  While we are not alone in the space, we have been offering annuity-based solutions for well over a decade and boast a deep product portfolio that includes:

Annuity Care® , 
Annuity Care® II,
Indexed Annuity Care®

What’s a good opportunity look like?  It’s pretty simple – a deferred annuity outside of surrender that is NOT intended to be utilized for income and/or is positioned to be liquidated in the event of an emergency and/or is simply positioned to pass on when the annuity holder passes on.

Go ahead, I dare ya.  Look at your book of business – I bet that you find annuities that should be doing more.  I dare ya.