MYGAs Continue to Heat Up This Summer

Have you reached out to your clients and prospects to talk about the current concerns about today’s fluctuating economy and the rise of inflation? Are they losing valuable retirement dollars in the market right now or not earning enough interest in their “safe” retirement choices?

During Annuity Awareness Month in June, you have the perfect opportunity to contact them and start a conversation about the ripe annuity market as rates continue to increase for multi-year guaranteed annuities (MYGA) as carriers position this product to fit into your clients’ retirement strategy.

According to a recent WINK article, MYGAs are gaining a lot of momentum, with MYGA sales being up 30% during the first quarter of 2022 compared to the fourth quarter of 2021 – and up nearly 10% year-over-year!

Let’s talk about some reasons why MYGAs are so popular right now!

• As a short-term accumulation option (3 years minimum typically), MYGA rates are climbing above 3.5% for the first time in a while, with an expectation that some carriers may adjust products to more than 4% during 2022
• The rate is GUARANTEED and “locked in” for the length of the annuity (AIPMA has access to MYGA products with 3-, 5-, 7- and even 10-year terms)
• Much higher accumulation potential than safer alternatives like bank CDs or savings accounts (typically under 1% interest based on current conditions)
• Client/Prospect money isn’t “tied up” for a long period of time

AIP Marketing Alliance is informing our valued independent insurance wholesalers and agents about the growing MYGA trend, and our team has multiple ways to help you promote MYGAs to your downline agents and consumer clients/prospects.

Our marketing team recently published an Annuity Awareness Month blog that shares some public websites that contain some agent-approved and consumer-approved flyers, social media graphics, videos, and other content to promote annuities. We also included some popular agent-only sites from AIPMA-contracted carriers.

For AIPMA wholesalers and agents, we are sending out weekly MYGA updates (3-year and 5-year products) highlighting the top rates for the week as well as MYGA charts listing AIPMA’s contracted carriers and products. Our wholesalers and agents also can leverage WINK’s AnnuitySpecs tool for real-time comparisons of MYGAs and other annuity products through our secure Agent Tools section on AIPMA’s website.

If that’s not enough, don’t forget about AIPMA’s exclusive Consumer Annuity in a Box program, which contains consumer-approved emails, social media posts, and videos to promote annuities through your email marketing application and social media channels.

As you can see above, AIP Marketing Alliance has the resources your agents need to promote Annuity Awareness Month and the trending MYGA products to your clients and prospects. Want access to these valuable sales and marketing tools? Contact our Business Development team at (800) 783-5206 Press #2 or email [email protected].