Are you familiar with the old phrase “There’s more than one way to skin a cat?” It seems awfully applicable in the financial services industry. After identifying a client’s needs in planning and preparing for retirement, producers typically have quite a few options to consider in determining just how to go about meeting those needs. No two financial pictures are identical, just as no two annuities are alike. To thrive in this business and excel at your job, you’re tasked with determining the right solution at the right time for the right client – and it’s nothing short of complex.

After reviewing features such as the surrender term, minimum premium, bonus, rider options and rates, you have to put all the pieces together and come up with a recommendation. Given the current market volatility and unpredictability of returns, it can be even more of a challenge selecting a fixed indexed annuity. Some products offer 10 or more interest crediting strategies to select in premium allocation! One way to “skin the cat” that you shouldn’t overlook is having products with above-average caps in your arsenal.

By capitalizing on the opportunity to provide a safe-money option that’s guaranteed not to lose market value while still giving them access to the market’s upside potential, clients literally can enjoy the best of both worlds. Products offering higher-than-average caps on different interest crediting strategies allow clients to take advantage of a bigger portion of that upside potential. For example, if a client has money allocated for retirement that’s earning 1.42% in a five-year CD ¹, what is the real cost of the opportunity to earn 4%, 8% or even higher returns from an annuity that can’t return less than zero? Take a look at a few of these products and how they can benefit your clients.

Great American Safe Return

With the Great American Safe Return annuity, you can help clients protect their wealth while enjoying the growth potential they desire. The return of premium feature can provide them with peace of mind knowing they can choose to surrender their contract at any time and have their money returned, guaranteed. This 10-year product also includes extended care and terminal illness waivers, an account value death benefit and 2% guaranteed minimum surrender value (GMSV) on 100% of premium.

Most uniquely, the product offers a bailout cap for indexed strategies to help protect your clients from a potential decline in renewal rates. This feature ensures that clients will be notified and have 30 days to withdraw or transfer the account value with no penalty in the event that the renewal cap is lower than the bailout cap. With current cap rates at 5% and above, this is a strong annuity to consider for providing clients safety and protection while helping them achieve the ultimate goal of providing retirement income.

FG Prosperity Elite Series

Fidelity and Guaranty Life’s recent launch of the Prosperity Elite series annuities highlights the company’s commitment to providing well-rounded products with competitive growth potential. Your clients can select from a seven-year, 10-year or 14-year chassis and six indexed crediting strategies with caps of up to 22%! To enhance the growth potential, clients have the optional of selecting from two rider “packages” that include a premium bonus feature to jumpstart accumulation.

In addition to asset growth, the Prosperity Elite series offers an income benefit base that combines a substantial income benefit base bonus OR a competitive roll-up, depending on the rider package selected. It also includes enhanced income for impairment and a guaranteed minimum death benefit for clients’ beneficiaries that can be paid in a lump sum or over five years.

North American Freedom Choice 10 & 14

For clients with a large premium of $250,000 or more who have the ability to select a longer surrender term, the North American Freedom Choice 10 and 14 high-band annuities might be the right choice. These annuities include an opportunity for clients to elect a lifetime annuity payout option based on the Accumulation Value (AV) after the first year. They also offer two penalty-free withdrawal options to meet your clients’ liquidity needs.

By providing clients with the ability to apply all or a portion of premium to a number of annual point-to-point and monthly point-to-point indexing accounts based on the performance of different markets, you can help them achieve solid returns. A number of these strategies currently offer cap rates of 5% or greater to help provide enhanced growth potential and income for life.

NWL Global Lookback

Sometimes, simplicity is the right choice for clients. If there are a large number of interest crediting options to choose from, they might feel overwhelmed and preoccupied with the possibility of making “the wrong” decision. For these clients, consider the NWL Global Lookback annuity. Clients can earn interest based on the performance of four indices, the S&P 500®, EURO STOXX 50®, Nikkei 225 and Hang Seng 30. With a defined participation rate and a small fee, clients can enjoy the upside potential weighted at 70% toward the two indices that perform the best throughout the year with no cap!

In addition to this “retrospective allocation,” the Global Lookback employs an annual ratchet to lock in annual gains. Additional features include optional income riders with lifetime withdrawal benefit options and 10% penalty-free withdrawals. A nine-year contract term and five-by-five annuitization round out this simple, solid product design.

Today’s low interest rates and fears of market decline have put many clients on the defense about moving money. Some have lost up to 30% of their net worth over the past few years and are wondering how they’re ever going to recover. Yet a number of these individuals have the mentality that they should simply wait it out and hope that the market rebounds. Why not offer them fixed indexed annuity solutions with above-average caps that can start the recovery today? Call your Annuity Sales Consultant to help put a feather in your cap with these powerful products.

¹ Bankrate.com five-year national CD average as of August 30, 2011.

FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 11900 - 2011/8/31

Great American Safe Return issued by Great American Life Insurance Company®, a subsidiary of Great American Financial Resources, Inc., Cincinnati, Ohio. For use with contract form P1074509NW, and waiver forms R6020708NW, R6019308NW, R1000600NW and R117(96)-1. Contract form numbers may vary by state. Products and features may not be available in all states. All guarantees based on the claims-paying ability of Great American Life. Please refer to your contract for definitions and complete terms and conditions, as this is a summary of the
annuity’s features.

Prosperity Elite Series Annuities, Form Numbers: API-1013(02-11), ACI-1013(02-11); et al., issued by Fidelity & Guaranty Life Insurance Company, Baltimore, MD. Guarantees are subject to the claims paying ability of Fidelity & Guaranty Life Insurance Company. Optional provisions and riders may have limitations, restrictions and additional charges.

The North American Freedom Choice is issued on form LC160A (group certificate), LS160A (individual contract), LR424A, LR426A, LR427A, LR428A, LR431A and LR433A (endorsements/riders) or appropriate state variation by North American Life Insurance Company, Chicago, Illinois. This product, its features and riders may not be available in all states.

NWL® Global Lookback (form 01-1144-07 and state variations) is a flexible premium deferred fixed indexed annuity issued by National Western Life Insurance Company®, Austin, Texas. Products not approved in all states. Certain limitations and exclusions apply. See policy for complete information and details.