Getting older means more aches and pains. It’s unavoidable. Not only do we experience physical
pains, but we also experience emotional pains.
It’s human nature to worry. As a society, we worry about everything from leaving the iron on to what shoes match our outfit. As we get older though, certain worries turn into significant problems.
Running out of money halfway through retirement is something we think about often. Whether it is outliving what we have saved or not having enough income per month, money is a real problem to worry about as we get older.
As financial planners, you have a solution - single premium immediate annuities or SPIA’s. Using a one-time deposit amount, a SPIA will pay out a specified dollar amount for a specified amount of time and can significantly enhance the lifestyle of an individual’s retirement.
Herein lies an opportunity. Medically underwritten SPIA’s are products that are of great value to clients, but are rarely used. A medically underwritten SPIA takes the health of a prospect into account to raise the client’s attained age. Therefore, the annuity payout is higher per month. I can’t think of a single person who wishes to become ill, but this is one case
where having bad health is actually a good thing. More pain equals more gain.
Insurance companies manage risk. Rates, products, underwriting…all of these are affected by risk. Medically underwritten SPIA’s take risk and give your clients the upper hand. So what information does an underwriter need? A general health history including surgeries, doctor visits, special consultations, and hospitalizations from the past 3 years is usually sufficient.
Next time you sit down with a client regarding a possible SPIA sale remember to ask about his or her health. A quick inquiry with an underwriter could result in an extra 5% or 10% or more per month, as well as a foundation for getting the sale.