9 Nov2014

Annuity Sales Practices – Are you only hearing about the benefits?

Have you ever sat through an annuity sales presentation where the benefits of an annuity are highlighted over and over again…yet the disadvantages are glossed over and barely mentioned? In any business agreement, the contract has to be advantageous for both parties involved. If the contract doesn’t work out for one side, it’s probably not an appropriate agreement. We are of the opinion that at a minimum, it is ethical and truthful to spend just as much time on the main disadvantages of an annuity as the advantages. As a client, you should make decisions based on the big picture – which includes analyzing both the pros and cons of the particular annuity that is being presented. The standard disadvantages of an annuity are as follows: contract period, surrender charges if the annuity is cancelled prior to the end of the contract period, potential cap on any gains, and/or lack of liquidity. As a client, you always have to remember that the insurance company wants to make you happy…but not too happy. The disadvantages exist to make the agreement profitable for the insurance company. However, the advantages of annuities can far outweigh these disadvantages – those advantages are different for each client. The standard advantages are as follows: deferred taxes, compound interest, guaranteed income for life, guaranteed death benefits, market-like returns with no risk to your original deposit, an upfront bonus to assist with previous market loss, guaranteed interest rates to allow for faster accumulation of your income value – the list goes on. When you request a consultation from Atlanta Wealth Security, you can always count on an honest presentation of a product appropriate for your needs – we make sure that you are aware of all pros and cons of the agreement to help you make an informed decision. Please call us at 678-648-7221 or use the “Contact” form on this website to make an inquiry.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>