Market-Linked Certificates of Deposit work very much like Fixed Indexed Annuities except they are issued by major global banks and are FDIC insured up to the statutory limits. Not only can you be compensated for offering bank issued products but adding them to your product tool box can expand your current market and open new ones.
Rather than competing with your FIA sales, offering MLCDs along side an FIA can lead to an increase in annuity sales. Instead of offering a one product solution and being seen as a sales person, showing both options put you in the position of helping your prospect make the best choice.
Most often that choice will be the FIA. However, by offering the Market-Linked CD as well you will gain sales where the annuity sale was not going to happen.
Indexing has come a long way since Jack Bogle introduced the first indexed mutual fund in 1976. Today many Market-Linked CDs are linked to cutting edge state of the art multi-asset and dynamically rebalanced indices.
They are in effect a diversified portfolio of asset classes which respond dynamically to changing market conditions. Unlike a passive index linked to a single asset class like the S&P 500, these are all weather performers. They are tracked on the Bloomberg ticker and can show historical returns.
