At Legacy, we pride ourselves on offering a diverse range of products that empower our clients to secure their future. With a rapidly changing insurance landscape, it's essential to constantly evolve and meet the growing needs of our clientele. That's why I am excited to introduce a lucrative opportunity for our agents: selling Fixed Indexed Annuities (FIAs).

However, like any other financial instrument, to sell FIAs, one needs to be appropriately licensed. Let's delve into the licensing requirements and embark on this journey of diversification together.

What are Fixed Indexed Annuities (FIAs)?

Before diving into the licensing details, it's crucial to understand what FIAs are. FIAs are insurance contracts that offer the potential for growth based on the performance of a market index, with the added benefit of protection against market downturns. They provide an enticing mix of potential gains and security, making them an appealing choice for many seeking a balanced retirement strategy.

Licensing Requirements for FIAs

At the heart of the matter, the main question many of you might have is: "Do I need a separate license to sell FIAs?" The answer isn't straightforward, as requirements can vary from state to state, but I'll provide a general overview:

1. Insurance License: At the very core, selling annuities requires an insurance license. Many of you already possess a life insurance license, which, in most states, qualifies you to sell fixed annuities, including FIAs.
2. Annuity Training: A significant number of states mandate agents to undergo specific annuity training before selling any annuity products, including FIAs. This usually involves a one-time course that covers topics like annuity suitability, different annuity types, and best practices.
3. Continuing Education (CE) Credits: Selling annuities often requires agents to earn a set number of CE credits dedicated to annuity products. It’s essential to stay updated on state-specific requirements and ensure you're meeting these demands.
4. Affiliation with an Insurance Carrier: Beyond the licensing and training, to sell FIAs, you'd typically need to be appointed by an insurance carrier that provides these products. We are currently in talks with several providers, and once final, we'll assist you in navigating this process.

Benefits of Selling FIAs

Now, why should you consider diving into the realm of FIAs? Here are compelling reasons:

1. Diverse Product Portfolio: Offering FIAs can diversify your portfolio, enabling you to cater to a broader clientele with varied risk appetites.
2. Consistent Income: FIAs can be a stable income source, as they often come with attractive commission structures.
3. Meeting Client Needs: With the uncertain nature of today’s markets, many clients are looking for investment vehicles that provide growth potential without the volatility of direct market investments. FIAs fit this bill perfectly.
4. Professional Growth: Mastering FIAs and their nuances can set you apart as a knowledgeable financial advisor, not just an insurance agent. This distinction can lead to higher trust and more significant business opportunities.

Our Commitment to You

As Legacy takes this step towards embracing FIAs, I want to assure you that we're with you every step of the way. We're investing in:

1. Training and Resources: Expect workshops, webinars, and materials to ensure you're equipped to sell FIAs effectively.
2. Dedicated Support: Our internal team will be on standby to address any questions or challenges you might face.
3. Carrier Partnerships: We’re forging strong relationships with top carriers to ensure you have the best products at your disposal.

To conclude, the journey into selling Fixed Indexed Annuities is promising and can be highly rewarding. With the right license, training, and our unwavering support, I believe our Legacy team can reach new heights.

As we look back on 2022, we see an exceptionally volatile year. A stock market that would rival the scariest rollercoasters, media hyping up inflation worries that didn’t impact consumer spending all that much to a Fed raising interest rates four consecutive times between June and November by a whopping three-quarters of a point. Then announcing another increase of a half point before the end of the year.

Each time interest rates went up the stock market crashed. Then rebounded only crash again the next time. While the rise in interest rates does affect consumer big ticket item spending with people putting those off, it’s great news for Life Insurance producers.

Why? Because crediting interest rates within IUL’s and annuities went up! For those of you unfamiliar with what fixed and fixed indexed annuities offer, they are the only financial vehicle to guarantee your clients’ principle and guarantee them a retirement income no matter how long they live. They cannot outlive the money.

Their money grows when the stock market goes up and loses nothing when the stock market crashes. The writing is on the wall already for 2023 with indicators that interest rates will continue to rise to help stem off a recession.

As licensed life agents we often become complacent of selling simple issue products and most have indicated that you want to do more. Selling Annuities is your answer.

Your life license offers you the ability to sell fixed and fixed indexed annuities to your clients. Outside of taking an annuity suitability course for the state(s) you want to sell in and some product training through a carrier you need nothing else. The suitability courses count as CE credits towards your license renewal and only have to be taken once.

On all your next appointments or insurance reviews on past clients and policy delivery of your AEP clients, you need to ask a few questions: “How did your retirement portfolio work for you this past year?” “If I could show you how you could never lose any more of your retirement money and still receive the gains when the stock market goes up, would you be interested?”

For those agents contracted with Legacy our Annuity training shows you exactly what to say, how to say it and when to say it to start selling annuities.

For agents looking to expand and grow your career in life insurance sales Annuities are the perfect product for you. With past issues of 2022 and the prosects of 2023 your clients need your help!