Who Buys Annuities and Why Should They?

As the industry promotes annuity awareness, June is the perfect time for you to talk to your clients and prospects about annuities as a long-term investment that delivers guaranteed income they can count on.

Who buys annuities?*

  • The average age (at first purchase) is 51
  • Gender is 50/50 (females at 51%) 
  • The median household income is $64,000
  • 59% of annuity owners are married

Many people underestimate how long they will live which puts a strain on personal savings and increases the likelihood of outliving personal assets. Retirees are living longer, healthier, and more active lives than generations before. Add the decreasing reliability of government and employer programs to provide sufficient income, and you have a retirement income gap that continues to grow for many Americans. 

According to recent research, 40% of investors say that they are very interested in income products like annuities. Fixed annuities are a good fit for many consumers and a valuable addition to retirement planning because they offer safety, growth potential, tax advantages and lifetime income.

Saving for retirement is important, but it’s only half the battle. It’s important to talk to your clients about annuities as a strategy to help them maintain their standard of living in retirement. 

 

 *From the Gallup 2013 Survey of Owners of Individual Annuity Contracts this is the demographic make-up of an annuity owner

Disability Insurance Replaces Income

If the COVID-19 pandemic has taught us anything, it's that our income is extremely important! We all need our income to pay bills. Many Americans would tap their savings or investment accounts to pay their bills if they couldn't work. According to the U.S. Social Security Administration, around half of those people would only have enough money to pay bills for six months or less.*

Are you asking your clients what they would do if they lost their income due to an illness or accident? If you are not, you should be! Disability insurance (DI) is often an overlooked part of a sound financial plan. One-third of working adults say that they would consider obtaining income protection if they knew more about it.*

Whether you primarily sell health or life insurance, your clients depend on their income to pay their bills, and that includes premium payments. Help them keep their financial life in balance with disability income insurance. And if helping your clients isn't enough incentive, advisors who offer DI to their existing clients earn 30% more income than advisors who don't.

May is Disability Insurance Awareness Month. Make sure you take advantage of this time to offer this important insurance to your clients and prospects. An income sustains a lifestyle and supports all financial assets, so it makes sense to protect it.

*U.S. Social Security Administration, Basic Facts, June 2016