Eighty-seven percent of variable annuities sold in the third quarter of 2010 came with a guarantee, compared with an 89% election rate for 2009 as a whole. Some market leaders are seeing uptake rates north of 90%. This demand suggests consumers will continue to value VA guarantees. It's not hard to see why. Guaranteed income with optional living benefits encourage clients to stay invested in equities, while insulating them against market downturns.

As important as guarantees are, now may be an excellent time to expand your clients' understanding of these products, especially regarding potentially confusing topics such as investment options and fees. Your discussion should start at a high level, moving through what I call the DCA funnel, and then branch into one or more additional conversations.

Register or login for access to this item and much more

All Bank Investment Consultant content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access