April 2010
Spring Brings New, Higher Rates – Just in Time for Tax Season
Spring is here bringing new opportunities. Most of you know that April is a big month for fixed annuities. People who are looking to defer taxes on their CDs and doing general tax planning create a great opportunity for you to address the tax advantages of annuities with your clients.
Since March 1st, The Standard has steadily increased our interest crediting rates on our traditional fixed annuities and the cap rates on our fixed index annuities. For example, take a look at our Focused Growth Annuity. Both the 5 and 6-year products are competitive in the marketplace and are a great alternative for the CD buyer. Also, our SPIA rates are back in the top quartile again. Try quoting us on your next SPIA case!
Check out our new, improved rates now.
Thank you for your business and here’s to a great second quarter!
Rich Lane
Director, Sales & Marketing
Focusing on Fundamentals Brings Success
By Scott Hibbs, Vice President, Asset Management Group
We’re a quarter of our way into 2010, and I’m pleased to say that the solid results we posted last year and the fundamentals we’re focusing on this year have gotten us off to a good start.
The businesses of the Asset Management Group might seem to be a little unrelated at first — Retirement Plans and commercial mortgages, as an example — but there’s a stronger connection there than you might think. It’s that underlying relationship which helps us build the foundation of our success.
Review Your Annuity Beneficiary Designations Now
Proper beneficiary designation text is extremely important for annuities. Please take a few minutes to review the rules. The language used must be absolutely clear, without ambiguity and provide indisputable instructions for payment of benefits in all circumstances. The reasons for this are twofold:
- Our principal business is to pay benefits according to the policy terms and the contract owner’s instructions, not to become embroiled in legal battles with beneficiaries. Using correct terminology allows us to provide the best service to our contract owners.
- It’s the law. An annuity policy is, after all, a legally binding contract.
Producer Advisories
Review this recent compliance alert for North Carolina.
Suitability of Non-Variable Annuity Sales
The question of whether annuities are suitable for the policyholders they are sold to has drawn attention recently. State insurance departments, annuity insurers, annuity producers and customers all have a stake in the suitability of annuity sales.
Numerous states have enacted laws and requirements regarding suitability of annuity sales. Annuity insurers have developed forms for your use to collect pertinent information and to describe annuity products to help you with your determination of a suitable sale. And consumers are looking to enhance their financial security by relying on your product knowledge and expertise to help them make the right decisions.
It is in the best interests of all stakeholders, especially our customers, to ensure that every annuity product recommendation meets customers’ financial goals and desires. To support you during the sales process, The Standard has developed the following guidelines for annuity sales suitability.
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