Summary
Editor
Harry N. Stout, president and chief executive officer of LifeStar Financial Network, Salt Lake City, says that EIAs enable investors to limit or eliminate potential losses in exchange for some restriction in their upside gains if stocks perform well. What other product can the consumer purchase that offers a guaranteed minimum return, an income that cannot be outlived, and the potential to share in the upward appreciation of the equity markets? Rick Rumelhart, vice president of marketing, Brokers International, Ltd., Panora, Iowa, says the biggest advantage of indexed annuities is the market upside potential with no downside risk. Such EIA advantages as risk avoidance, tax deferral, probate avoidance, guaranteed death benefits, and potential lifetime income stream make EIAs a strong product for the retirement planning market.See the full content of this document
Extract
The Outlook Is Bright for Eias
Equity index annuities have a bright future. As both consumers and producers learn more about how EIAs work and the benefits they offer, sales will become even better and brighter.
Nothing happens in business until someone sells something.Robert L. Louchart, Pekin, Ill., has been selling equity index annuities since 1996."There have been many changes in the product," he says. "There are many versions and crediting methods on indexed annuities. In my opinion, some are better than others."Mr. Louchart likes the EIA's ability to provide safety to the client with the potential of annual returns of 6% to 9%. His prospects' favorite feature is the safety of principal. "They don't have to settle for 2% to 3% bank CD returns," he says.In presenting EIAs to prospects, Mr. Louchart explains that the product offers the best of both worlds - safety of principal, potentially good returns, and a guaranteed interest rate of 2% or 3%.Prospec...See the full content of this document
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