Late Fall 2009
The Annuity Advantage: Help Clients Say “Yes”
Current annuity rates exceed most bank CDs and money market accounts.1 They also deliver a wealth of unique advantages, including tax-deferred growth, Social Security benefit tax avoidance, lifetime income options, guaranteed survivor benefits and probate avoidance.
Your clients may not know that, unlike CDs and Money Market Accounts, most tax-deferred fixed annuities benefit from the beauty of “triple-compounding,” earning interest on the principal and on the interest itself, as well as on the amount that would have been paid as income taxes.
Compared to stocks, corporate bonds and mutual funds, annuities offer the additional advantages of principal protection and guaranteed growth. And deferred annuities can even offer competitive growth.
The chart below gives you an easy way to illustrate these advantages to your clients. Use this tool to help them say “Yes” to annuities.
Eight Advantages of Annuities
Set your goal then compare the features and benefits of several products before you buy.
| Deferred Annuity | Mutual Fund | Corporate Bond | Bank CD | Treasury Bill | Stock | Money Market |
| 1. Principal Protection2 | ||||||
| Yes | No | No | Yes | Yes | No | Yes |
|---|---|---|---|---|---|---|
| 2. Tax-Deferred Growth | ||||||
| Yes | No | No | No | No | No | No |
| 3. Social Security Benefit Tax Avoidance | ||||||
| Yes | No | No | No | No | No | No |
| 4. Guaranteed Growth | ||||||
| Yes | No | No | Yes | Yes | No | No |
| 5. Competitive Growth | ||||||
| Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| 6. Lifetime Income Options | ||||||
| Yes | No | No | No | No | No | No |
| 7. Guaranteed Survivor Benefits | ||||||
| Yes | No | No | No | No | No | No |
| 8. Probate Avoidance | ||||||
| Yes | No | No | No | No | No | No |
1 Based on published annuity, CD and money market rates, Nov. 11, 2009
2 Please note that while the Index Growth Annuity from Standard Insurance Company provides 100% principal protection with an optional Principal Guarantee feature (which reduces rates by 0.40%), not all deferred annuities provide this feature. The table above is for illustration purposes only and is not intended as tax or financial advice. As always, before making important financial decisions, please consult with your financial or tax advisor for information specific to your situation.