I had the pleasure of attending the Kansas City Life MGA Conference for 2013. KC Life is an up and coming carrier who has some really competitive products that we can all benefit from. They are forward thinkers and they have a balanced approach at creating products that are sustainable and sellable. Some of their great ideas have led to some great products including the best ROP term product in the market (the twist is it is built on a whole life chassis); a fixed annuity with an income rider (not an equity index but a fixed product) and their latest creation an Equity Index UL that is a real cash accumulator.
At the conference I was privileged to hear a presentation on the KC Life income rider that is part of their annuities. Like my previous article in this blog “What is a Mortality Credit”
KC Life gives us some real ammunition in dealing with retirees…here are some highlights:
There is a lot of science in retirement planning – including understanding the following questions:
- How long will I live in retirement?
- What is a proper spending rate?
- How much risky stocks vs. safe investments?
- Is my current plan sustainable?
- How long will my number last?
So many factors are part of the equation that the “science” of retirement is clearly a part of the unknown. In the 2011 Report on Retirement Income from the Government Accountability Office even they acknowledged the complexity and risk associated with planning for retirement:
“(Retirees) should use a portion of their savings to purchase a lifetime income annuity to cover necessary expenses.”
By giving up control of part of your money you can gain control over the many uncertainties in retirement – longevity, withdrawal rate, market fluctuation, order of returns and deflation.
If you are not yet looking at annuities with income riders, now with the endorsement of our government, you should be. Call us to find out the best products and solutions for your clients. We can help you @ 1-800-338-1892.