To make a proper assessment, you must uncover your customer’s objective. It’s not always easy. Your customers might not know their objective. They will rely on you to help identify their needs and reveal their options. This table provides important considerations to help you uncover a customer’s needs and determine if a fixed annuity may be appropriate.
|Possible financial objective||Ask these questions|
|Is your customer focused on SAFETY?||Are you more concerned with protecting your principal or potential growth? On a scale of 1-10, if 1 represents cash and 10 represents stocks, what is your risk tolerance level?|
|Is your customer focused on TAX DEFERRAL? Should it be an objective given his or her situation?||What is your tax bracket? Are you worried about reducing income taxes?|
|Is your customer focused on a consistent, conservative YIELD?||What investment return do you think you need to reach your objectives? Are you concerned about a minimum guaranteed return? Are you concerned about taxes?|
|Is LIQUIDITY a concern? Help the customer understand the options for accessing funds from the annuity and any applicable charges.||When will you need to access your money? How much do you keep for emergencies?|
|Is your customer interested in ESTATE PLANNING?||Are funds available that can easily pass to beneficiaries and avoid a lengthy probate process? Is it important to have funds that can be passed easily to beneficiaries?|