Annuity Sales: Using a Layered Approach
National Underwriter (Life/Health) (08/07/00) Vol. 104, No. 32 p.14; Shapiro, David

Fixed annuities have features like safety of principal and universal tax deferral that are good for clients looking to avoid taxes. For consumers who find value in the different features of annuities, an annuity can be an effective tool within a qualified plan. While some insurers try to exact a profit margin for tax deferral through overall pricing, there is no explicit cost associated with an annuity. Some other features of annuities that are helpful to consumers are the protection of the death benefit; an income that cannot be outlived; the general account assets, which provide protection from market risk; and the flexibility of the various subaccounts found in a given product.

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