Top 5 Annuity Myths

Fixed-indexed annuities offer benefits that might be missing from your clients’ portfolios, such as principal protection and lifetime income options. But are certain myths keeping you from offering these valuable solutions to your clients? It’s time to learn the truth behind the myths!

Myth 1:All annuities come with a commission.
  Truth:Fee-based fixed-indexed annuities are an increasingly popular solution in the RIA market. They pay 0% commission and are designed to fit with a fee-based structure, while offering greater earning potential than many fixed income investments.

Myth 2:Annuities are too complicated.
  Truth:You may be familiar with older annuities that featured long surrender charge schedules and complex interest crediting methods. However, annuities have evolved over the years, and Great American Life® is proud to be a leader in offering annuities that are easier to understand, with shorter surrender charge schedules, fewer moving parts and no hidden fees or surprises.

Myth 3:Annuities are not compatible with an RIA's platform.
  Truth:Great American has invested significant time and resources to integrate with most RIA platforms available today. Additionally, we offer a cutting-edge digital solution that allows you to easily add a fee-based annuity to a client's advisory portfolio.

Myth 4:Annuities are expensive.
  Truth:There are no maintenance or annual fees with a fixed-indexed annuity. Optional riders that provide additional benefits may be available for an annual charge.

Myth 5:Annuities lock up my clients' money.
  Truth:While annuities are designed to bring long-term value to a portfolio, liquidity options are available. Most annuities allow a certain percentage, typically 10%, to be withdrawn each year without an early withdrawal charge. This feature may be useful for portfolio rebalancing. Great American Life offers a fee-based annuity that includes a return of premium guarantee. If clients choose to surrender their contract after the third contract year, they will receive no less than their initial purchase payment (minus prior withdrawals).

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