What's the Best Annuity?
- coreincomemarketing
- Jul 13, 2025
- 5 min read
What's the right annuity for your client?
And can you prove you're recommending the best one?
Table of Contents:
How Are You Analyzing Annuities?
Ask yourself:
Are you backing your advice with data-driven product comparisons?
Can you demonstrate that your recommendation is mathematically superior to other available options?
Do you provide objective proof that increases client confidence and stands up to compliance scrutiny?
Generally, there are three things you can do with your money:
Live with it: use it to support your lifestyle during retirement.
Die with it: leave it behind as a legacy or unused assets.
Quit with it: exit the contract or stop the strategy and take your money back.
These three options forms what we call the actuarial triangle: a framework that captures the core objectives behind any annuity strategy. It’s the methodology we use to help maximize the value your clients get from insurance products.
The best and right annuity for your client is the one that aligns and maximizes with their primary goal, typically by delivering a reliable, guaranteed income stream that lasts a lifetime.
This is where an actuarial analysis of your book of business changes everything.
As an FMO built by a team of actuaries, every recommendation we make is rooted in math, backed by data, and built to stand up to client questions and compliance review.
Here’s what it looks like when advisors use actuarial analysis to maximize client value:
Client Case #1: In-Force Review That Delivered 40% Increase in Cash Flow
Client Profile:
Single
DOB: 08/25/1950
Objective: More money to spend in retirement
Existing Annuity
This client had a variable annuity with an income rider.
Shortcoming of Existing Contract
High fees (~5.0%) from M&E, fund fees, rider fees on higher benefit base
Weak income rider: the client had already turned on income but wasn’t happy with the payout
Limited growth on the account (forced asset allocation and fees)
Actuarial Analysis
Using our actuarial methodology and risk management tools, we conducted extensive research to identify a product that would increase this client’s lifetime income significantly.
By using the Internal Rate of Return (IRR) tool in our proprietary (and free!) suite of risk management tools, Actuary Lab, we demonstrated that by the client’s life expectancy, they would receive an additional $126,260 by implementing our recommended solution. This move increased their IRR to 6.5% annualized— all from an annuity with no market risk.
The Outcome
With the client making a move to the new solution we found, here were the results:
Original income: $15,651/year
New income: $21,964/year
Increase: $6,313/year – a 40% boost in annual cash flow
Client Case #2: In-Force Review That Freed Up 55% of the Account Value to Reposition
Client Profile:
Married
DOB: 08/25/1950 (client), 06/05/1957 (spouse)
Objective: Use annuity withdrawals to satisfy Required Minimum Distributions (RMDs)
Existing Annuity
The client held an index annuity with an allocation fee.
Shortcomings of Existing Contract
Low growth with existing rates
No guarantee on the income provided, no extended RMD coverage
Limited flexibility for additional options
Actuarial Analysis
To identify a higher-performing asset dedication strategy, we used Actuary Lab, third-party tools, and our in-house income rider calculator to conduct a comprehensive review of available options.
Our analysis in Actuary Lab included:
IRR: to compare the cash flow streams over time and evaluate the total expected lifetime income from the annuity contracts.
Sequence of Returns (SoR): to demonstrate how taking income during years with no growth (or losses) and paying fees cannot allow for recovery once that money is gone.
The Outcome
By moving only 45% of the current account to a traditional fixed annuity with an income rider, we delivered:
Coverage for the entire RMD from the one smaller account.
An income the client cannot outlive, even if the account has no value remaining.
Reposition of the remaining 55% into a higher growth and higher opportunity asset not exposed to Sequence of Returns.
Client Case #3
In-Force Review That Delivered an Increase of Over $1 Million in Lifetime Income
Client Profile:
Married
DOB: 02/02/1961 (client), 05/04/1960 (spouse)
Single life annuity
Objective: Less exposure to market volatility, better guaranteed income, and income for both of their lifetimes
Existing Annuity
The client owned a variable annuity with a single life income rider, that unknowingly had to select single or joint on the original issue date.
Shortcomings of Existing Contract
The existing income rider had a complicated feature with a baseline guaranteed income that could go higher, but only if the value of the annuity had gains built up, which made income planning in the client’s retirement more difficult.
The client didn’t like the idea that the income they received could drop in the future.
The client (and the spouse) didn’t like that the income would disappear upon her death.
Actuarial Analysis
To identify a more competitive solution, we leveraged Actuary Lab along with additional tools to find the highest guaranteed income options and compare them directly with the client’s existing contract.
The Outcome
By moving the $1.2M cash value to our recommended index income annuity, the client was able to increase their guaranteed income floor from $53,000 to $86,000 annually.
Over their projected life expectancy into their early 90’s, the total expected lifetime income increased by more than $1 million in comparison to their current situation.
Let’s Review Your Book of Business
Has it been over 6 months since you reviewed your clients’ annuity portfolios?
If not, now is the perfect time for a fresh look.
With our actuarial tools and methodology, we’re here to help you identify mathematically superior solutions that outperform existing client contracts.
Put us to the test (at no cost to you!),
Send us a case to see firsthand how our actuarial approach can elevate your in-force reviews: email us at info@coreincome.com or call 800-541-7713.
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Core Income is an FMO, IMO, and independent insurance brokerage dedicated to serving financial advisors, their staff, and their clients.
Our mission is to help advisors deliver financial certainty by supporting them through actuarial precision, elite responsiveness, and collaborative partnerships.
To learn more about how we can support you, schedule a consultation with our team or call us at 800.541.7713.
Stay connected with us on social media for more tips and insights on annuities, life insurance, and long-term care.
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