2012 RECESSION? THINK ANNUITIES, LIFE INSURANCE!

Word on the street is that there is a 50-50 chance of a recession in 2012. The instability of European markets (“PIIGS” Portugal, Italy, Ireland, Greece and Spain), the housing market bubble in China, and the interconnectedness of global financial markets, are prime concerns.

According to a new study by Cogent Research and the Insured Retirement Institute, “Now is a prime time for advisers to start proactively reaching out to clients regarding the potential benefits associated with annuity ownership, particularly among younger investors,” the study said. “Recent market volatility has provided advisers additional case studies for positioning the benefits associated with annuities…such as tax-deferred increases in account value, guaranteed principal, a guaranteed income that one cannot outlive, and long-term care riders.”

Permanent life insurance is also a haven from many sources of volatility and uncertainty. Most life policies have a variety of contractual guarantees not found in most market-driven financial products. Whole life insurance is experiencing an upsurge in sales due to its guarantee of both cash value and death benefit, and the option to “over-fund” the contract to enhance tax-deferred cash buildup . Hybrid and linked insurance contracts can provide living benefits such as long-term care and critical illness coverage. If your client has money that they don’t need for retirement but want to make sure it passes to the next generations in the most tax-favored way, permanent life insurance might also be the answer.

Call or email me for ideas on how to help re-balance your client’s overall financial portfolio to include strong, safe, and secure insurance products.