What is an important consideration for selling annuity products to individual consumers?

When selling annuity products to individual consumers, consumer's suitability is paramount. This consideration ensures that the product being offered aligns with the financial circumstances, goals, and needs of the consumer.

Annuities can be complex financial instruments with various features, such as income guarantees, investment choices, and withdrawal options. Assessing suitability involves understanding the consumer’s age, investment objectives, risk tolerance, and whether they are seeking a steady income stream for retirement or a long-term investment growth strategy. A suitable annuity can fulfill the individual's financial needs, while an unsuitable one can lead to dissatisfaction and potential financial hardship.

In this context, the other options, while important in their own right, do not take precedence over ensuring that the product matches the consumer's specific situation and goals. For example, an insurer's reputation is important for reliability and trust, but it doesn't guarantee that the policy will suit the individual's needs. Similarly, an agent's commission is a matter of compensation and does not reflect the product's appropriateness for the consumer, and while the policy's flexibility can be beneficial, it still must align with the consumer's planned use and expectations. Ultimately, in the context of selling annuities, prioritizing the consumer's suitability is crucial for ethical