One could argue that there couldn’t be a better time to talk to your clients about a Registered Index Linked Annuity (RILA). Why now? Well, there are a few things we know.
- The market is down roughly 30% YTD
- People are in fear of losing more money
- If you jump out of the market now, it will be nearly impossible to recover
- Volatility due to COVID-19 is not going away tomorrow
This creates the perfect storm for RILA’s. Let’s look at the Equitable Structured Capital Strategies Plus contract as an example. The market is already down 30%. The Structured Capital Strategies Plus contract offers 10%, 20%, and 30% downside protection options. With the market already down about 30%, if you got into this contract now, you would essentially have 40%, 50%, or 60% downside protection in relation to the market high versus the client losing money. In addition to this, you are staying in the market so you can fully participate in the rebound/recovery while paying no fees to do so. It’s as simple as that.
In the 4th quarter of 2019, clients were concerned with volatility and a pullback in the market looming somewhere out there. Many financial professionals answered these concerns with conversations about Registered Index Linked Annuities. In fact, RILA sales were up quarter over quarter 39% in Q4 of 2019, while individual non-variable annuity sales were down 18%. These clients do not want to miss the rebound. Clients are concerned about the market right now, and we know if they pull out now, it is likely they will never recover. RILA’s are a way to keep investors participating in the market with a hedge against the downside and no cost. With the deck stacked in your favor as far as hedging against the downside, now is the time to talk about RILA’s.
Below is a link to the Equitable Structured Capital Strategies Plus contract and the different ways that you can build the contract. If you would like to discuss this contract in more detail or other RILA options available to you, please give me a call at 303.797.9080 x 113 or email me at email@example.com.
Click the link below and then select “Structured Capital Strategies Plus” in the drop down menu to see the current rates for the Equitable Structured Capital Strategies Plus contract:
Contact Micah Hesting for more information:
Relationships/Business Development Strategist