Purpose: For Wholesalers and Internal Marketers to use as talking points in overcoming any Producer objections to the MarkOneSM* Annuity Series, Investors Insurance Corporation, or EIAs in general.
| Product Objection | Suggested Response |
| I sell only 3% on 100% products. | I can understand your concern and need for strong guarantees. The real guarantee in this product is protection from loss in poor markets and strong participation when the market does well. |
| A 12-year surrender charge schedule is too long. My clients prefer a shorter surrender schedule such as seven years. | Let's
be honest, no surrender schedule is short enough if clients are
unhappy with the contract. Many of my Producers have found MarkOneSM*
to be a good fit for clients because it does something rare in this
business: MarkOneSM* meets clients'
expectations. If the EIA does what your clients expect, wouldn't you
agree that the surrender schedule is less of an issue?
OR
Are your clients really concerned about
surrender charges? Or, are they primarily concerned about having
access to their money in an emergency? MarkOneSM*
has some of the strongest liquidity features in the industry: 10%
surrender charge-free withdrawals annually,** a powerful confinement
waiver, ** and an option to annuitize after one-year for as little as
eight years. By adding the Beneficiary Rider†
Plus, your clients' families will have extra resources to help offset
income taxes at death (non-qualified contracts issued prior to age 75
only). |
| Why don't you have a high-water-mark product? | The MarkOneSM* annual reset strategies make a high water mark unnecessary. Your clients always get the results of the best year. |
| This product is too confusing. | Many Producers struggle with explaining equity index annuities to clients. But, some top Producers tell me that MarkOneSM* eliminates a lot of this confusion. The MarkOneSM* annual reset point-to-point strategy with 100% participation and no administrative fee is the easiest EIA for their clients to understand. |
| I sell only monthly averaged products. I think these products are always better for clients. | Great! You should take a look at the MarkOneSM* S&P 500®†† One-Year Strategy A (monthly averaging). Some Producers like to help clients diversify by splitting the premium between the monthly averaging and point-to- point strategies. |
| The commission is too low. | IIC and Legacy try to strike a balance between what's good for Producers and what's good for policyholders. You can't get a better commission without giving up some strong guarantees. Most Producers think that the commission on MarkOneSM* is excellent. |
| I don't like long-term point-to-point EIAs. | Some Producers find this strategy invaluable for younger clients, IRA planning, and split annuities. Of course, one of the best things about MarkOneSM* is that it offers annual reset strategies. Use what you like today, and the rest will be there tomorrow if you change your mind. |
| Why can't I run illustrations on MarkOneSM*? | No one knows what the S&P 500®†† will do in the next 10 years. The great thing about MarkOneSM* is its simple design. With the MarkOneSM* point-to-point strategies, it is easy for clients to see exactly how this product works. |
| Carrier Objection | Suggested Response |
| I've never heard of the carrier. Who is IIC? | I'm not surprised you haven't heard of IIC. It is a small subsidiary of SCOR, one of the largest reinsurers in the world. IIC is located in Jacksonville, Florida. |
| I am concerned that my E&O policy won't cover me for business written with a carrier that isn't top rated. | The
typical E&O policy actually covers the business you write on all
carriers. The only thing that isn't covered is carrier insolvency. IIC
is a subsidiary of SCOR. Did you know that SCOR:
|
| EIA Objection | Suggested Response |
| I don't like EIAs. | I can appreciate that. I have some great traditional declared rate fixed annuities for you, but before we get into those, can I ask what you don't like about EIAs? |
| I don't like that they are tied to the stock market. | The beauty of EIAs is how they protect your clients from losing money while providing them with the possibility for greater growth. |
| My clients could earn nothing (0%) in certain years. | That is certainly true on a year-to-year basis, but remember the contract's lifetime minimum guarantee. Also, what are your clients likely to earn on a one-year CD? Probably not more than 1.5%. With EIAs, your clients are trading very little for the opportunity to earn a lot more. |
| My clients aren't comfortable using the S&P 500®†† as a benchmark. | One of the best ways to illustrate the growth of the S&P 500®†† is to get a newspaper from a milestone date for your client (e.g., their birth date, wedding date, child's birth date). Show them the value of the 500®†† on that date and compare it with current index values. The index growth should tell the story. |
| Don't EIAs have options? Aren't options risky? | The
role of the insurance company is to take the risk out of a fixed
annuity. With MarkOneSM,* your
clients' money can do only one of two things: go up or stay level.
With MarkOneSM,* MarkOneSM*
your clients' contract value can never go backward. Does that sound
risky to you?
OR
Options by themselves are risky. The
insurance company protects your clients' money with bonds. It uses the
options solely to generate interest. In some years, if the options
don't work out, your clients may not get any interest. In other years,
when the options do pay off, clients may get an exceptional interest
gain. |
| I sell VAs with GMIBs and guaranteed death benefits, so that's much better than an EIA. | MarkOneSM*
is designed to protect your clients from the market, from themselves,
and from "annuicide." No VA can do all that. Annuicide: Having to either annuitize or die to collect a contract value. Protecting clients from themselves: From 1984 to 2002, the S&P 500®†† averaged 12.22%, while the average investor earned 2.57%. Source: The Economist (July 5, 2003). |
Bottom line: The best-laid plans will not come to fruition if your clients can't stay with them. The greatest thing about MarkOneSM* is that your clients will never lose interest because of market risk. How much better will your clients sleep knowing their money can only increase or stay the same?