Jim Wagner

Chief Distribution Officer, Retirement Division at Protective

Propelled by a surge in fixed annuity sales, total annuity sales hit $310 billion in 2022 – shattering records set in 2008, according to a recent LIMRA survey (go to LIMRA's site to read more). Faltering stocks and bonds and lingering recessionary fears led to aggressive interest rate hikes, which contributed to higher annuity payouts. This is great news for clients looking for growth to help fuel accumulation ahead of retirement. But finding a holistic solution designed to cover your client’s unique needs can be tricky – and you don’t want to leave opportunities on the table. That’s why the comprehensive features built into a solution like Protective^® Aspirations variable annuity is worth considering.

Here are 5 use cases to help reveal if a variable annuity is right for your client — and position you as their go-to retirement-planning resource.

1. It's designed for maximum income.
2. It covers illness and long-term care.
3. Flexibility is apparent and easy to employ.
4. It helps fill potential legacy planning gaps.
5. It has more to offer than a client's existing annuities.

1. It's designed for maximum income.

When uncertainty looms, adding a variable annuity with a living benefit to your client’s existing retirement strategy can reduce portfolio reliance rate and ultimately strengthen income distribution for life, no matter what the market does. And that’s true even if the contract value falls to zero or a poor sequence of returns means your client’s portfolio takes a hit. A living benefit does come with a cost, but the guarantee it offers could be well worth the investment – especially given the market volatility that's here to stay.

Did you know?

When clients add the SecurePay Protector^SM living benefit available with Protective Aspirations variable annuity, they have unique opportunities to efficiently maximize their income base growth. That’s because this benefit’s unique single-age-based approach to withdrawal rates is designed for stronger guaranteed income — even when plans change. This is thanks to a combination of a 5% compounding benefit base¹ roll-up and a competitive withdrawal rates, like 6% at 65², that increases the longer your client defers income. Generally, variable annuities feature a banded approach that plateaus for a number of years, potentially locking them into a lower rate if they don't reach the next "band." But our variable annuity features increasing withdrawal rates to help boost your clients’ income potential year after year, no matter when they retire and elect income.

2. It covers illness and long-term care

According to the National Council on Aging (check out the report on their site), nearly 95% of adults age 65 or older in the US have at least one chronic condition, and nearly 80% of have two or more. And recent data from the US Department of Health and Human Services (read more about the numbers on their site) revealed the average 65-year-old today has a 70% chance of needing some type of long-term care in their remaining years. So, it’s a safe bet your client can benefit from a solution that offers options to help manage these future possibilities.

Did you know?

When clients add a living benefit to Protective Aspirations variable annuity, the SecurePay NH³ feature is included at no additional cost. This feature allows clients to increase their annual withdrawals (up to 10%) should they require nursing home care in retirement. It’s another way you can reduce risk in their retirement strategy and add more value.

3. Flexibility is apparent and easy to employ.

A lot can change in ten years. Unexpected illness, job loss, divorce or even widowhood affect many clients between the time they purchase an annuity and when they're ready to take income. These are difficult, but important, conversations to have with your clients. And you don’t want to lock them into a solution that may work for them now but not later. So, the flexibility of the solution you offer is key.

Did you know?

A flexible solution like Protective Aspirations variable annuity offers a choice of two optional lifetime income benefits – SecurePay Protector and SecurePay Investor^SM – so you can build a client-centric strategy designed to manage life’s “what-ifs.” For example, clients don’t have to decide up front to add a living benefit in the first place – they can do it later with our exclusive RightTime feature. If they do add a living benefit, they won’t be locked into irreversible choices when life happens. They can make a better decision for them when their situation is clearer. Plus, there’s no additional fee if they choose joint income. Another flexible feature included with both living benefits is SecurePay Reserve⁴, which allows clients to defer and rollover up to 3 times their annual withdrawal amount to use when they need it.

4. It helps fill potential legacy planning gaps.

If your client has legacy planning needs that aren’t fully covered by their existing life insurance policy, consider a variable annuity’s death benefits. Because a variable annuity is invested — and hopefully reaping the benefits of time in the market — the contract value is more likely to last well into retirement. That increases the likelihood of passing a death benefit on to loved ones, compared to what’s offered with the fixed solutions your client might be considering.

Did you know?

Protective Aspirations variable annuity offers two enhanced death benefit options to lock in additional death benefit on either a quarterly or annual basis. It’s just one more feature that’s designed to deliver more value to your clients.

5. It has more to offer than a client's existing annuities.

With rates being more competitive, now might be a great time to review your clients' existing guaranteed retirement income amounts to ensure they're on track to get the highest payout possible. If it’s in your client’s best interest to make the switch, consider looking into a 1035 Exchange as a way to transfer funds from an existing policy to a new one without tax implications.

Did you know?

Your client’s existing annuity solution might not be the most efficient or comprehensive for them. Protective Aspirations variable annuity is designed to deliver more guaranteed income, more flexibility for when life happens and more legacy planning solutions for your clients.

You’ll never regret vetting a variable annuity to ensure it’s a good fit for your client.

Your clients trust your guidance and expertise when planning for retirement. Thoroughly considering every feature of a solution like Protective Aspirations variable annuity can help clients feel more confident in your approach. Plus, it positions you as their go-to retirement strategy resource now and in the future.

Learn how Protective Aspirations variable annuity is designed to deliver more for your clients.