Have you ever used the term “Guaranteed lifetime Income”? If you have…you are shooting yourself in the foot, according to a study done by the Financial Security Project at Boston College. The study found that people described it as “iffy” and unrealistic. What term did they respond better to? I’ll tell you in a moment.
But first! The real crux of the study was that the terms we use as advisors everyday…terms and phrases we view as simple and easy…are NOT! Most people interviewed did not know what any of these terms were:
- Transparent fees
- Hidden fees
- Or any other of a number of terms we throw around daily
People don’t trust jargon…or more importantly the people that use it. ALWAYS, ALWAYS, ALWAYS use everyday language!!! Don’t try to look smart by tossing around language they don’t understand. It undermines how much they trust you. Nobody likes a smarty pants!
So what word did they prefer over “Guaranteed lifetime Income”? They prefer “protection”.
You can watch a 1½ minute video of the answers the interviewer got on the street. A real eye-opener