A Defibrillator for a “Dead” Annuity?
Question: What does a defibrillator do?
Answer: It delivers a dose of electric current to the heart to give it life.
Question: What is a “dead” annuity?
Answer: It’s an annuity that the client doesn’t have a stated purpose for and therefore it sits in an annuity growing tax deferred. Most likely will be used for care expenses or be passed on to beneficiaries at death.
When clients were polled, they were asked a few things:
Primary intended use – 79% will use to avoid being a burden on their children and 73% will use it to fund a catastrophic illness or nursing home care.
Tax treatment – 86% cite the tax treatment as a main reason for choosing the product (all they know is tax deferral unaware of tax free money.)
Guaranteed lifetime withdrawal benefit – 77% of owners with GLWB say the feature factored in their decision to purchase (who knew they liked lifetime income?)
Annuity Care does all three! There for care expenses, tax deferral AND tax free for care, and can be turned into a lifetime income stream for care expenses that cannot be matched anywhere else!
Example:
- 71 Female with $200,000 annuity with mostly gain in the policy earning 3%.
- Repurposed to Annuity Care providing $59,000 per year for the rest of her life (tax free) to pay for care expense bills.
- She would have had to received 29% YOY guaranteed in a contract elsewhere to get the equivalent.
- Listed reasons why it was suitable – lifetime, tax free, long-term care, for senior client – passed suitability requirement.
Do you have an income rider that can do that?
- Do you want to take care of your clients, attract new clients, AND bring in new revenue?
- Do you want to offer something that doesn’t require APS, paramed, blood, or urine? (Only medical questions and cognitive screening)
- Are you willing to spend time learning the ins and outs of this product and how to discuss Annuity Care and Annuity Care II to your clients?