Why EIAs are So Popular
The perfect blend of guarantees and equity market
performance
it's no doubt you've heard it before . . . EIAs sales are RED
HOT! Check out these stats from The Advantage Group,
an index product tracking service based in St. Louis,
Missouri:
- Equity Index Annuity sales hit nearly $2.8 billion in 2nd
quarter of 2002. (A sales record!)
- First quarter sales were nearly $2.12 billion.
- Total for first 6 months of 2002; nearly $5 billion.
- 2Q sales represent a 74% increase over the same period
last year.
- 2Q new sales: 43% from 1035 exchanges and 57% from new
money.
- Average premium is $36,807.
Why are people buying EIAs?
With today's stock market roller coaster ride, consumers
are looking for security and return of their money, not just
high returns. EIAs are attractive alternatives to
traditional high-risk investments because they offer a minimum
guaranteed interest rate, the ability to link interest credits
to gains in an equity index, tax-advantaged growth and
preservation of principal.
Most EIA products also allow customers to move their money
between an indexed account and a fixed account annually.
This gives them the flexibility to make decisions that work
for their own financial situation.
The various guarantees associated with EIAs are also
powerful benefits to point out during the sales process.
These include: guaranteed cash value, guaranteed lifetime
income options AND guaranteed minimum interest, which is often
credited at a higher percentage rate than returns currently
earned on CDs and bonds.
Most important, EIAs are traditional fixed annuities and
are backed by the full faith and trust of the insurance
company that issues them. Can't say that about stocks or
mutual funds.
Check out how IIS&B's
EIA's Stack up . . .
- EARN INTEREST across asset classes--DJIA
or S&P 500 and Fixed Account
- SPREAD RISK by duration--7 or 10 years
depending on index chosen
- LOCK in earned interest annually--once
credited can never be taken away
- Receive statement of ACCOUNT VALUES ANNUALLY
- ACCELERATE GAINS with annual reset &
compounding
- MINIMIZE VOLATILITY with monthly
averaging
- GUARANTEE GAIN regardless of index
performance
- Offers LIQUIDITY--10% Free, RMD,
confinement and Terminal Illness
- Provides FULL ACCUMULATION at death.
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Intro to EIAs
S&P 500 Index
Benefits of the S&P
Advantage 500 Prospects
Gain without Pain
Extended Forecast
Sample Calculation
Selling Points
Best & Worst
Annuity Performance
Why EIAs are Popular
Source: Annuity Marketing Focus, 3rd
Quarter 2002.
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