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Addressing the age factor: points to consider

You already know that different customers will face different situations. The fact is some customers will likely face more challenging issues than others. That is particularly true for your customers who are approaching retirement and those who are already in retirement. Think about how their investment time horizon will change and how an unsuitable product can impact their funds. Consider the potential for some of these customers to face significant life changes such as the death of a spouse or a possible illness. There is the possibility that their liquidity needs may change, which could trigger a greater need for income. Keep in mind that suitability analysis applies to customers of all ages, but you are required to pay special attention to potential challenges senior customers might face.
What do your customers want?

They want to benefit from their fixed annuity. They want to avoid surprises. Whether your customer is nearing retirement or is already in retirement, your recommendations must be based on a review of your customer’s financial situation and investment objectives. The chart below includes critical factors to consider and the reasons why those factors are important.

agefactor-chart


Ask yourself if the fixed annuity product you are recommending will work to your customer’s benefit — now and in the future. Remember, 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.