Annuities

Annuities are the most efficient means of generating retirement income, and perhaps the only way to mitigate longevity risk . Commission-Free annuities can quickly outperform fixed income in generating retirement income, and provide payouts long after fixed income portfolios would be depleted. Use our Guaranteed Income tool to see how a no-load annuity can address your clients' retirement income needs.

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The benefits of Commission-Free annuities for guaranteed income

Fixed Income Allocation

Academic research shows Commission-Free annuities can generate income 40% more efficiently than bonds.

Downside Protection

Commission-Free annuities can help protect assets from market volatility while providing upside potential.

Sequence of Returns Risk Mitigation

Annuities can provide guaranteed income, helping clients maintain their lifestyles as they enter retirement.

Why Annuities Are the New "Plan A"

DPL Consultant Jonathan Barth examines why advisors are using annuities — not bonds or cash — to complement equities and help improve portfolio performance for their clients.

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Why stocks and annuities are the new "Plan A"

DPL's Jonathan Barth explains why stocks and bonds are no longer the best solution for clients who want to de-risk their portfolio and why using both investments and Commission-Free insurance can provide the best value for clients.

Annuities

Annuities are perhaps the only way to mitigate longevity risk, but they also are a more efficient means of generating retirement income. Annuities can quickly outperform fixed income in generating retirement income, and provide payouts long after fixed income portfolios would be depleted.

Type	Summary
Registered Index Linked Annuity	Registered Index Linked Annuities (also known as Structured Variable Annuities or Buffer Annuities) are tax-deferred insurance vehicles that provide upside potential with a defined degree of downside protection. The investor assumes the portion of the market risk that is in excess of the "buffer" or the initial losses before reaching the... Solves for Principal Protection, Retirement Income
Deferred Income Annuity	A deferred income annuity is a contract funded with a lump-sum payment (premium) in exchange for guaranteed income payments at a future date. Also known as a longevity annuity because of qualified longevity annuity contract (QLAC) eligibility, a deferred income annuity can serve as a pension-like income stream for investors without a defined benefit plan through their... Solves for Retirement Income
Fixed Index Annuity	Fixed index annuities are tax-deferred insurance products that provide market upside, while protecting principal from market losses. Assets are allocated into indices that are designed to replicate market performance. These fixed index annuity indices are typically accompanied with cap rates, spreads, or participation rates. Solves for Retirement Income, Principal Protection, Annuity Rescue+
Multi-Year Guaranteed Annuity	Multi-year guaranteed annuities (MYGAs) offer a tax-deferred guaranteed rate of return for the duration of the product. These simple, short-duration annuities are often used by advisors for fixed income allocations. Solves for Retirement Income, Principal Protection, Tax Deferral
Single Premium Immediate Annuity	A single premium immediate annuity is a contract funded with a single lump-sum payment (premium) in exchange for guaranteed income payments. Designed to supplement retirement income, a single premium immediate annuity insures the purchaser against outliving their money or exhausting it within a certain timeframe. A single premium immediate annuity... Solves for Retirement Income
Variable Annuity	Variable annuities are tax-deferred insurance contracts with an underlying value that fluctuates based on the performance of the underlying investments. These products often offer insurance benefits such as guaranteed income or a death benefit. The ability to annuitize assets into a guaranteed lifetime income stream is the fundamental feature that qualifies a... Solves for Tax Deferral, Annuity Rescue+, Legacy Planning, Retirement Income, Wealth Accumulation
Fixed Annuity	Fixed annuities are simplified products, offering a tax-deferred guaranteed fixed rate of return for a specified period. Solves for Retirement Income, Principal Protection, Tax Deferral

Insights and Resources

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David Lau's Perspective: Billing on Insurance

Feb 07, 2019

David Lau explains why advisors have to bill on insurance as they would on any...

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Investment News RIA Labs: Fee Based Everything

Jun 13, 2022

This RIA Lab replay explores the many options available that allow RIAs to deliver a...

Video

DPL Product Discovery Tools: Fixed Income Comparison

Dec 08, 2021

Academic research shows that annuities can often be a more efficient means of generating retirement...

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How to Use DPL’s Annuity Product Discovery Calculators

Jun 07, 2022

Vice President of Member Success, Tim Rembowski, explains how the DPL Product Discovery Tools help...

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A Day at DPL with Wade Pfau | How to allocate to an annuity

Feb 04, 2020

Many advisors ask DPL about allocating to an annuity . Wade Pfau PhD, CFA, RICP shares his...

Webinar

Getting Started with the SS&C Advent Insurance Marketplace

Dec 02, 2020

Advent has partnered with DPL Financial Partners to bring the Advent Insurance Marketplace to Black...

Video

Annuity Rescue+

Feb 07, 2019

DPL Senior Consultant Cody Williams explains how DPL helps advisors bring additional value to clients...

Video

Leveraging the MYGA (Multi Year Guaranteed Annuity) for Fixed Income

Jun 03, 2022

DPL’s Lead Consultant, Ross McGoodwin, shares how DPL members can leverage solutions in the MYGA...

Article

What's Behind The Boom In Annuity Sales?

Aug 13, 2021

Every quarter, SRI releases annuity sales data. But this release was particularly surprising to some...

Common Questions

How can annuities help with wealth accumulation?

Annuities can help clients accumulate wealth in two ways: 1) through tax-deferred accumulation, and, 2) through the efficient funding of retirement income. The additional tax deferral that can be accessed through low-cost variable annuities can be beneficial to high income earners who quickly max out their 401(k)s and IRAs. Academic research shows that annuities can fund retirement income more efficiently than traditional fixed income portfolios. By requiring fewer assets to generate income than traditional fixed income strategies, allocating to an annuity to fund essential retirement expenses leaves a greater share of a client’s portfolio to be invested in long term equity strategies that leverage accumulation potential.

How can annuities improve legacies?

The basic premise is that by using an annuity to efficiently fund retirement income, more assets are available to be invested in equities to grow legacy assets. Clients with longer life expectancies will benefit most as they generate income from their annuities even after their cash balances have been exhausted.

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.

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.

Have more questions about Commission-Free Annuities?

Call us at 888.327.0049 to speak to a DPL Consultant.

Contact a DPL Consultant