Retirement Income Opportunity Despite Uncertainty

Have you ever heard the fable about how to properly cook a frog?

Maybe you have, maybe not, but recently I was thinking about how it applies to where many insurance agents and their clients have found themselves; in hot water. Simply put, if the insurance industry were suddenly placed into boiling water (i.e. diminished product guarantees), it would seek to offer consumers other product solutions or it would create new product offerings very quickly. However, if the industry were to experience bearable and consistent product downgrades or changes, many wouldn’t

Scott Gilpin

Retirement Marketing Manager
800.541.6705

perceive the danger. It’s a grim metaphor for the industry’s reaction to change, immediate or gradual, but it paints an accurate picture.

The pandemic has brought about many changes in our day-to-day lives as well as how industries conduct business. With how fast Covid-19 changed the world around us, I’m not the first to comment on how hot the temperature in the pot is now. If it wasn’t already, the water certainly reached a boil on August 27^th with Jerome Powell’s presentation of the Federal Reserve’s new position on interest rates. So far as we can tell, the Federal government plans to keep interest rates near zero for at least the next couple of years, maybe longer. That’s disconcerting news for many but, despite the uncertainty, there are still many opportunities available for those looking.

Have you ever heard the fable about how to properly cook a frog?

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"The water reached a boil on August 27th with Jerome Powell’s presentation of the Federal Reserve’s new position on interest rates."

The water got hot fast so, in my opinion, it is a good time to review alternative products and benefits with clients to ensure their financial safety net is secure for years to come. The more security you can bring to the table the better. With that in mind, I would take time to review not only the Multi-Year Guaranteed Annuity rates. I’d also keep an eye on fixed-index annuity products. Because the rates are low, with either of these

products clients won’t see themselves lose money. There’s an opportunity here to “decrease the temperature of the water” your clients have found themselves in. Locked-in rates create a long-term safety measure that you can take to your clients concerned about their sustainable income options.

As the pot continues to boil, go to your clients with solutions and have them get the guarantees they’ll need before they’re unavailable. Explore potential cash flow alternatives a client could experience during their and/or their spouse lives and explain how these annuity options could provide them income for the extent of their life. There’s a product for almost any situation, but it’s up to you to convince your clients that they’re worth it. Producers XL offers carriers with diverse benefits and routes for keeping money safe. Despite the general feeling of uncertainty, we still offer some of the best rates available and we’ll work tirelessly to help you get your clients a plan that fits their circumstances.