Annuities are an often-polarizing financial product, with strong advocates for (and against) their utilization for client planning. At Risk & Insurance, we believe that annuities can provide incredibly valuable planning benefits when used appropriately. If life insurance provides protection in the event a client dies too soon, annuities provide guarantees that income will continue should a client live too long.
With the societal transition from defined benefit to defined contribution plans, many clients and advisors are seeking lifetime income guarantees similar to the pension plans of a generation ago. Navigating the complexity of carriers and product designs can be intimidating – especially considering the various iterations of annuities available: immediate, deferred immediate (seriously), fixed deferred, fixed indexed, variable, structured, and more. Our team has specific expertise on the modern state of the annuity landscape and can assist in determining whether an annuity can be an effective tool in accomplishing the objectives of a particular client. Often, this necessitates a comprehensive review of annuities currently owned by your clients.
Our team maintains a strong working knowledge and database of retired annuity products and critical working relationships with our annuity carrier partners so that all involved can understand the underpinnings and inner workings of these products.