March 2011
Meeting Of Minds, Ideas And Perspectives
We had solid performance across the board in our asset management businesses in 2010, and we head into 2011 in a strong competitive position, ready to grow. The economy is showing signs of life, and the need for the financial products and services we deliver has never been greater.
With recent headlines such as "Baby Boomers Fear Outliving Medicare" and "15 Ways to Never Run Out of Money," it is clear our customers and potential customers need us more than ever. The Standard knows how important it is for you, our valued partners, to have consumer-friendly annuities backed by a rock-solid promise to pay.
Later this month I'll meet with our top annuity National Marketing Organizations. We'll spend some time reviewing 2010, but I'll focus on sharing my perspective on what lies ahead. I always enjoy meeting with this group to hear what's on their minds and the minds of their producers, and look forward to the exchange of ideas.
Stay tuned next month for highlights from our NMO meeting and a 360-degree perspective on the industry.
Scott Hibbs
Vice President, Asset Management Group
Recent Research Trumps Immediate Annuities' Biggest Objection
Published by permission from InsuranceNewsNet Magazine, InsuranceNewsNet.com (Feb. 2011)
When clients ask if they will lose their money with an annuity, LIMRA has the answer.
Immediate income annuities suffer from two common misconceptions: "If I die soon after purchasing an income annuity, the insurance company will keep all my money," and, "If I need some of my money tomorrow, I can’t access it." A recent LIMRA study dispels both of these income annuity stigmas.
Understanding the Interest-Paid-As-Earned Option
One of the most attractive selling points of many of The Standard's deferred annuity contracts is the ability to access "interest paid as earned." It is often quoted incorrectly, however, and causes stress for the clients and embarrassing situations for the producers.
The adage, "You can't have your cake and eat it, too," is particularly true regarding interest-paid-as-earned. Clients signing up for this option need to understand that if they take interest before the full 365-day period has ended, the advantage of triple compounding will not be realized. In other words, if a client elects scheduled interest-paid-as-earned on a monthly, quarterly or semi-annual basis, they will not earn interest on the interest. The interest rate quoted at the time of purchase assumes no withdrawals will be taken.
Producer Advisories
Colorado: Regulation 4-1-11 – Suitability of Annuity Sales
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Oklahoma: Senate Bill 2043 – L&H Insurance Guaranty Notice
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Focused Growth Annuity 5, 6, 7 And 10 Now Available In New Jersey
We're happy to announce our Focused Growth Annuity 5, 6, 7 and 10 are now available for sale in New Jersey. Until now, we have not been able to offer our Focused Growth Annuity to New Jersey residents. Check current rates.