Ohio National Financial Services, Annuities

You are most likely to identify SPDA annuity prospects among people who currently have maturing CDs and money market accounts they are holding for longer-term needs. You may find people with mutual funds who are interested in the advantages of a Variable Annuity, with which they can continue to direct the investment of their dollars. On the other hand, you may find people with mutual funds who are disappointed with their investment results and are now interested in the guarantees of a fixed annuity.

You might also identify SPDA prospects among those dissatisfied with the results of deferred annuities they currently own. With the proper use of a "1035 exchange," it is possible to exchange one annuity contract for another annuity contract without incurring any current tax liabilities. In order to accomplish this tax-free exchange, the annuity owner must avoid "constructive receipt" of the proceeds of the existing annuity. The IRS has ruled that the way to accomplish this is to have the funds transferred directly between the two insurance companies.

Another source of SPDA sales is people who receive annual bonuses. Many people allocate at least a portion of such bonuses to longer-term wealth accumulation or retirement planning needs.

In general, concentrate SPDA marketing efforts on people age 50 and up, since members of this age group have had more opportunity to accumulate large sums of money ("core dollars"), and are particularly interested in retirement planning. This brings to mind another source of SPDA prospects – individuals over 55 who exclude the gain from the sale of their principal residence. These people commonly have large sums of money to invest for retirement purposes.

Ohio National is not affiliated with, nor does it endorse or sponsor, any particular prospecting, marketing or selling system.