While so many Americans have recently lost money, those with assets invested in Fixed Indexed Annuities are totally protected. This is due to the principle protection component of indexed annuities. These fixed annuities earn interest when the index shows a positive change but will show no loss when the index shows a negative change (Ex: S&P Index). So, clients with indexed annuities may not earn interest in 2020, however, they did not lose any money in February!

Not only are indexed annuity clients protected right now, but they are positioned for growth. Within any crisis, there is an opportunity. Indexing strategies operate on a point-to-point basis, meaning clients will earn interest in any given year independent of the prior year (annual point-to-point). So, it does not matter what the index did in 2020… if it shows a positive in 2021, clients will earn interest based on the 2021 change. Bottom line – clients buying indexed annuities at a time like this (when indexes are low), have a high likelihood of earning strong interest moving forward.

Indexed Annuities also offer product features that can assist clients in re-cooping recent losses. An FIA with a Premium Bonus, a Lifetime Income Rider, or some type of LTC multiplier might help improve your client’s current financial situation. Let’s say you have a prospect who lost 15% of their IRA recently. You can tell them, “Mr. Client, I know you’re upset that your portfolio lost 15%, what if I could show you a product that would give you 10% guaranteed just for transferring the funds? With no risk of principle… Would you be interested in something like that?”

Perhaps your IRA prospect who recently lost 15% was planning on retiring soon but relying on that IRA to supplement income. You could talk to them about an FIA with a Guaranteed Lifetime Income Rider. Some Income Rider products offer bonuses to the income account of up to 20% in the first year. You could help them recapture that 15% loss with respect to their income payments moving forward. Many of these income riders will also double income payments for LTC or Nursing Home confinement.

At Pinnacle Financial we offer direct contracts and top-level commissions with dozens of A-Rated Annuity Carriers. Our team assists our Advisors with the entire Annuity sale from start to finish. This includes leads/marketing, illustrations/case design, CRM, and business processing. Please contact us today to learn more about the indexed annuity products that we offer here at Pinnacle Financial Services!