Annuities offer many unique benefits for senior adults and by focusing on these benefits you can close your annuity leads much more easily. More precisely, if you stay away from focusing on the yield of interest credited and refocus on the true and unique benefits available with annuities you will increase production dramatically. So what are the benefits?

The first benefit is “Tax Deferral.” You can actually pay fewer income taxes by placing your warehoused money in an annuity. With an annuity you only pay taxes when you touch the funds, in other words, you are in complete control of your tax liability.

The second benefit is “Triple Compounding” and is the result of tax deferral. If you defer your taxes then you earn interest in three separate areas.

• You earn compounded interest on your invested funds.
• You earn compounded interest on your accumulated interest.
• You earn compounded interest on the tax liability of the money you would have sent to the government.

The third benefit is “Tax Advantage”. If you own an IRA and you are 70 ½ years of age you must begin withdrawal of your funds under the Required Minimum Distribution Rules. Annuities enjoy the same tax deferred status of an IRA but are EXEMPT of the required minimum distribution rule. No FORCE OUT at age 70 ½ or at any age!

The fourth benefit is “Access” to your funds and withdrawal. Many competitors such as banks and stock brokers use the withdrawal provision as a negative. In actuality it is a complete positive. Here is how you remove funds from an annuity.

• Access of 10% of your account value annually.
• Monthly earned interest, you are allowed to withdraw the earned interest on a monthly basis
• Income for any time period. At anytime you are allowed to convert your “pile” of money to an income stream for any time period you choose.
• Beneficiary, your beneficiary is entitled to 100% of your funds at anytime.

The fifth benefit is “Growth.” Your account is guaranteed to only grow. Your funds are fully guaranteed to increase and never decrease! All annuity contracts have a minimum guaranteed interest that will be credited regardless of what happens to our economy.

The sixth benefit is “Avoiding Probate.” If an annuity has a specified beneficiary the funds from an annuity avoid probate and are paid directly to the beneficiary without any delay or expense. This allows the beneficiary to avoid legal expense and time delays in receiving the funds.

Annuities can be wonderful products when used for the benefits they contain. Less tax liability, liquidity, guaranteed growth and guaranteed income are all benefits that can be enjoyed with annuities. Agents should not focus on the rate of return and simply explain the unique benefits. Follow this one simple tip with your annuity leads and you will close more sales.

Article Source: http://EzineArticles.com/?expert=Bill_Broich

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