I came across an article recently from Simplicity, a carrier we offer annuity products through, that detailed how studies have found retirees with a guaranteed income live happier and longer lives. It seems obvious that a person who receives a consistent monthly income would have less stress and therefore remove the health-related issues that stress can cause. So where are these retirees gaining a sense of security from? Pensions and Social Security once provided that sense of security but, unfortunately, that simply isn’t the case anymore. Few employees provide pensions and Social Security payments only equal about 40% of the average wage earner’s pre-retirement income. So, we, as agents, must provide alternative options like Annuities.
There are several annuity options available that are providing guaranteed income for life on the market. Single-Premium Immediate Annuities (SPIA) and Deferred Immediate Annuities (DIA) are just a few. The SPIA will provide income immediately for life or just several years. The DIA will perform the same way but the start date is delayed for over a year.
Although those are both great options, the most utilized income-for-life option chosen is an income rider attached to an annuity. Producers XL work with many carriers that offer a Fixed Indexed Annuity with an income rider as an up-sale at purchase. This add-on is then activated when the customer is ready to start income for life.
Producers XL offers another solution in the Multi-Year Guarantee Annuities (MYGA) that have the option to add the Income for Life rider. MYGA provides an attractive alternate product because the customer receives the fixed interest rate but now can also receive an income for life. One of the neat benefits to MYGA, especially with IRA Accounts, is the addition of the
spouse as the annuitant beneficiary, continuing the income for life payments for the rest of the spouse’s life. They will never outlive the income!
Annuities can provide that sense of security every retiree requires to ensure retirement is a time of fun and relaxation. They worked hard all their life, now is the time to live life to the fullest, not stress about daily living expenses. For more options, please feel free to reach out for resources and tools to assist in any sales conversation.
