As people grow in age they tend to think more about the future and what that may hold for them. Many times, an individual may look at their parents and want the same amenities those parents have carefully constructed over a lifetime of hard work and saving. It seems so easy, simply save and then when they retire that money will be there and will last for the remainder of their days; affording them not only the daily comforts of life but the perks of leisure retirement as well. While you as an advisor can’t make this life magically appear, you can guide these potential clients toward the products that will help them reach the retirement goals they are dreaming of.
While linked benefit products may be a wonderful way to guard against the uncertainties of the future, they may not be the right fit for every individual and family. The benefits of a linked benefit policy may give higher returns and flexibility in coverage but there are issues some clients don’t know about. While generally giving higher returns, those returns are ultimately not guaranteed. A client with little to invest might not want to get tied up in this type of insurance since the payout, though greater than most products, may fail to meet expectations.
Another avenue to explore is the annuity. Annuities in general are a wonderful way to invest money to guard against running out of money throughout retirement. With a variety of annuity types, like fixed and variable, and the option to receive payments when the client chooses, this investment choice gives more freedom to people over a wide spectrum of income levels. On the flip side, annuities do have some drawbacks that can scare some people away. Variable annuities don’t always give the best return and annuity fees can really bite into future earnings.
While every policy and product isn’t meant for every client, taking the time to get to know your clients and consider their needs vs. their wants will help you direct them toward the best product for their long-term needs. In the end, you will be their most valuable asset as they plan for their future income needs