The Department of Labor's transitional version of its Fiduciary Rule is scheduled to take effect June 9th, 2017.
To help you through the transition process, we have put together a Producer DOL Preparation Kit that contains all the necessary documentation you will need.
We've also provided further explanation of each document in the kit and procedural guidance below.
Since you will now be considered a fiduciary June 9th and after, you are legally and ethically bound to act in the best interests of your clients when writing qualified business.
Annuity advisors not offering enough option...
The 3rd Annual Guaranteed Lifetime Income Study has found that, even though most retirees and pre-retirees want a wide variety of retirement strategies presented to them by their financial advisors, they rarely feel these are provided. Consumers also believe that there is a responsibility on the part of financial advisors to guide them towards products offering guaranteed lifetime income. More than 50 percent saw annuity products as an option they would likely consider.
The survey found that only a third of consumers were very familiar with annuities, and even fewer understood that there were annuity products that would guarantee a certain income level for life. It would appear that there is a significant potential annuity sales market, but a “disconnect” exists between what consumers want and what their financial advisors provide. The fact that only 3 in 10 consumers surveyed have discussed guaranteed lifetime-income products with their financial advisors is a sign that potential annuity buyers are not finding the information they need.
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The survey and associated research were jointly produced by Greenwald & Associates, a full-service market research firm based in Washington DC, and CANNEX, a Canadian provider of consumer-market analytics to the financial services industry that is based in Toronto. The survey covered 1,105 consumers from the ages of 55 to 75 with a minimum of $100,000 in investable assets.
It is clear from the survey that consumers planning for retirement would like to consider a wide variety of options. Nine out of ten respondents desired multiple retirement strategies from their financial advisors and 60 percent believe there is a responsibility on the part of finance professionals to lay out guaranteed-income products like annuities to their clients.
Even though annuities are an option many retirees and pre-retirees desire, sales of such products are actually in decline. According to LIMRA, a financial services research organization based in Connecticut, a total of $222 billion worth of individual fixed and variable annuities were sold in 2016, a 6 percent decline from 2015. The low interest rates seen since the onset of the Great Recession have dampened the sale of annuities, as have the cost and complexity of products.
The best-known annuity program in the United States is actually Social Security, which is the foundation for the retirement years of most Americans. Annuities sold by life insurance and retirement companies can be a stable supplement to this universal program.
Among the survey’s other findings:
“The data shows when it comes to their investment portfolios, consumers are focused on risk assets including equities, but at the same time want to ensure that in retirement they will have the income they need to meet their needs,” said Gary Baker, president of Cannex USA, via a press release. “The lack of familiarity about specific products underscores the importance of providing advisors and their clients options to meet both needs.”
According to the research, potential annuity buyers are three times more likely to add such products to their portfolio when financial advisors present them as an option. This indicates that retirement advisors need to rethink their assumptions about what best serves their clients. It would appear that income-generating products simply are not emphasized enough, even though many annuity products are available.
“Americans are comfortable with the idea of working towards a savings goal as they approach retirement,” according to the Greenwald & Associates press release announcing publication of the study. “They are less used to the idea of working towards an income goal once we reach retirement. This makes it difficult to see how guaranteed lifetime income products might fit into one’s strategy for funding retirement.”
The gap between the desires of consumers of financial retirement products and the options presented by professional financial advisors needs to be more closely examined. Overall annuity sales remain flat, even as many consumers understand the value of annuity products as a part of their retirement strategy.
Benefit 10 Annuity get's a facelift. Increased premium bonus and income rider payout rates. Click Here to download the latest rate sheet.
Allianz Life- Effective March 31, 2017 Allianz Life will discontinue the sale of the MasterDex X and Endurance Plus annuities. Please click here for additional details.
Legacy Marketing Products
Legacy Americo Annuities
Legacy has recently increased the rates for the LibertyMark and LibertyMark SE product lines. Here are the current rates, if you have any questions or would like to see how these new rates stacks up give your advisor consultant a call.
North American Annuities in CA
North American is glad to reintroduce the following products back into the California market. They will become available effective Tuesday the 14th and are listed below with a link for product information on each:
RetireChoice 10 and 14:
Income Choice 10:
Charter Plus 10:
Guarantee 3 and 5 year MYGA's:
Phoenix is raising rates on all products Effective February 1st. Click here for more info.
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