Sales of indexed annuities were only up a disappointing 1% in the first quarter of 2011, according to LIMRA.
Jack Marrion, president of Advantage Compendium, attributes flat indexed annuity sales to the low interest rates that are keeping cap ceilings in the 3% – 4% range on most products. Agents are resistant to the idea of selling a product that doesn’t even give the client a chance for more than 3% or 4% upside growth.
Bill Kauffman of Senior Market Sales, Inc. says agents who have moved away from recommending capped products or are thinking about moving away from capped products should look for uncapped alternatives like the BalancedAllocation Annuity (BAA).
“With the BAA, your clients' gains are not subject to the caps and participation rates seen in most fixed indexed annuities,” Kauffman said.
Instead, policyholders enjoy 100% participation in the Balanced Allocation Strategy, which arrives at interest earnings by blending two elements: the S&P 500 Index and a declared interest rate.
Armed with experience, innovative products and exclusive selling systems, the SMS annuity marketing team helps agents and advisors all over the country boost their income and provide their clients with the best possible financial solutions. Call our annuity department at 1-877-645-4939.