Below are answers to questions we get asked most often by advisors. If you have a question that is not answered here, or simply want to explore ways we can help you, please give us a call at 888-327-0049. We’d love to hear what’s on your mind.
Does DPL perform analysis of annuities my clients already own?
One of the services we provide to our members is the evaluation of clients' existing annuity policies to determine if it is possible to leverage current benefits to help meet the goals of the financial plan, or, if it makes sense to use the policy to fund a no-load annuity that may be able to achieve client goals more efficiently.
My client owns a variable annuity, if they exchange it, do they need to get another VA?
No. A 1035 exchange can be used to move from a variable annuity into any other type of annuity. Your DPL consultant can work with you to find the product that best fits with the needs of your client’s financial plan.
My firm doesn’t address annuities clients already own, why should we?
Clients can often save thousands of dollars in product fees when it makes sense to move from a commissioned insurance product to a low-cost, commission-free product. In addition to providing potentially improved financial outcomes to your clients, offering insurance solutions as part of a holistic financial planning process enables you to expand services, potentially attract new clients and increase AUM.
We already have a provider for annuity rescue, what advantage does DPL bring?
The core premise of annuity rescue is to reduce product cost when possible. DPL takes that premise further by looking to not only reduce cost, but also meet other client needs. DPL consultants discuss client scenarios with advisors to provide different solutions that can improve clients' financial plans. Clients often want low-cost guaranteed income, tax efficient withdrawal strategies and/or principal protection, and DPL can provide these solutions.
Are all SPIAs illiquid?
Yes, once assets are invested into a single premium immediate annuity (SPIA), they have been annuitized with the insurance carrier and turned into an income stream. For clients who fear “losing” to the insurance carrier, utilizing a "period certain" feature can ensure heirs receive assets in the event the client passes away earlier than expected.
What product types can provide guaranteed lifetime income?
Most advisors think of single premium immediate annuities (SPIAs) when they think about lifetime income, but other types of annuities also can be used. Fixed Index, Variable and Deferred Income annuities can all provide guaranteed lifetime income. Based on client objectives, your DPL Consultant can help you find the right product type to meet their needs.
Why is guaranteed lifetime income important?
Lifetime income is important to clients for many reasons, both financial and psychological. Lifetime income guarantees through annuities often can fund retirement income needs more efficiently than fixed income, while helping mitigate sequence of return risk and longevity risks. Guaranteed income also provides psychological benefits to clients by providing income certainty even when markets may not be.
Why would you use a fixed index annuity (FIA) for retirement income?
The principal protection aspect of fixed index annuities (FIAs) make these products a strong choice for clients nearing or in retirement to help mitigate sequence of returns risk. FIAs also can have strong payout options that often increase when clients delay taking income payouts. DPL recommends advisors consider an allocation to FIAs as part of a client’s fixed income portfolio as they near retirement.
Why would you use a variable annuity (VA) for retirement income?
While income payout rates are typically lower in VAs than other products, variable annuities provide the most potential upside. For clients with longer investment horizons, the value of tax deferral can help accumulation, potentially providing a larger balance to drive the income payments when income features are elected.
Become a member
Firms join DPL for many reasons: To meet client demand for expanded services, to bring their clients’ insurance under their fiduciary umbrella, to differentiate their firm and offering, and more.