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Customers want benefits. They want to avoid surprises. Whether your customer is nearing or already in retirement, your recommendations must be based on a review of their financial situation and investment objectives. The table below includes critical factors to consider and why those factors are important.
| Considerations | Consider these factors to … |
| Age and investment time horizon | … avoid recommending annuities with surrender periods that may extend beyond the customer’s life expectancy. |
| Liquidity needs | … determine the need to access income. It is inappropriate to sell seniors annuities with long surrender periods or that do not offer generous withdrawal provisions. |
| Other assets or income sources | … avoid allocating a significant part of a customer’s retirement money toward annuities with withdrawal charges and other restrictions. |
| Increasing living expenses | … help customers avoid restrictions that work against them. If living expenses are expected to increase, consider annuities featuring withdrawal charge waivers for extended care or terminal illness. |
| Issue age guidelines | … ensure that the product is tailored for the customer. Pay attention to the issue age and product guidelines. |
Ask yourself if the fixed annuity product you are recommending will work to your customer’s benefit — now and in the future. You are required to have reasonable grounds for believing that your recommendation is suitable for your customers. Carefully review your customer’s financial situation, age and liquidity needs when assessing whether a Western National annuity is an appropriate recommendation.