Those of us in marketing tend to make assumptions that salespeople plan their prospecting around topical events. For instance, April marks one of the most popular months for CDs to mature (the other being in October).
This presents an opportunity for capturing those funds and placing them into annuities for better return or into a relatively new product, a market-linked CD. These CDs are issued by noteworthy banks, are FDIC-insured and, best of all, do not require a securities license to sell. This opens up a whole new realm for producers to tap into a $15 billion market.
MLCDs are good for your client because they are 100 percent principal protected by the FDIC (up to $250,000) and offer the potential for greater returns than bonds or regular CDs
. And, according to Arete Consulting, the average sale is $92,000 (as opposed to $59,000 for FIAs).
Offering MLCDs to clients who cannot or will not buy an FIA is good business practice.