THINK “GUARANTEES”: THINK ANNUITIES
In a new online survey conducted by Allianz Life when asked to rate several factors related to creating a more secure retirement, the most popular answer was “having a guaranteed stream of income in retirement” (86 percent), says the Minnesota insurer. This was more important for those age 55 and up than for younger nonretirees, for females than males, and for marrieds than not-marrieds and college educated, according to the researchers.
Annuities provide an income one cannot outlive. If the money depostited into the annuity has already been taxed, only a portion of that income will be taxable as income to the recipient. Some uses for this income:
- Supplemental retirement income.
- Paying for premiums on a life insurance policy (leveraging wealth transfer) or long-term care policy (protecting assets).
- Providing for special-needs adult children.
- Tax-deductible charitable contributions.
Be sure to perform a proper fact-finder to assure suitability and compliance for sales to seniors. Also, encourage your client to consult with a qualified tax advisor before purchase.
