81 year old looking for lifetime income benefit indexed annuity

Oct 3, 2018

  1. navigator
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    navigator Super Genius

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    Hello, I have a gentleman who is 81, has a current IRA indexed annuity with a 5.5% surrender charge and very low caps. He has been looking for almost 4 years now for a contract with a lifetime income benefit (which he though he had) to replace some income within 2 years and higher caps. Question is, is there any company out there who will consider a replacement with a 5.5% surrender and if so do they have any type of a premium bonus along with the income benefit rider?

    Thanks in advance...
     
  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    The age makes a product recommendation harder to find in the first place. Add in the surrender charge and the bonus would make this an easy target to be arrested in California.

    I'd consider annuitizing the existing contract, finding a different index segment in the contract for better earning, or *maybe* a SPIA.

    Maybe someone else would have other ideas.
     
    DHK, Oct 3, 2018
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  3. Life Hawk
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    Life Hawk Guru

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    Happy hunting... that would be new one on me... at that age, most clients are looking for asset protection not growth... and to echo DHK, you better careful or the premium bonus might just come out of your pocket after court fees. :yes:
     
  4. navigator
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    Thanks ya’ll.... think I may just pass this one up...
     
  5. Tahoe Ray
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    Tahoe Ray Guru

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    I wouldn't touch this case as it stands.

    Bonus can't be used to offset surrender for most carriers' suitability guidelines.

    Off the top of my head, Great American will take an 83yo w/ lifetime income.

    Maybe wait a few years until there is little to no surrender and go from there.
     
  6. davephx
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    davephx Expert

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    Instead of paying for an income rider, most policies let you take out 10%/yr surrender free.
     
    davephx, Oct 4, 2018
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  7. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Apples and oranges.
     
    DHK, Oct 4, 2018
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  8. Life Hawk
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    81 year old, surrender charges...
    Leave it alone... it might bite...
     
  9. Tahoe Ray
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    Tahoe Ray Guru

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    It's really not as big of a deal as you think...SPIAs have unlimited surrender penalties and yet they're written on 91 year olds.

    Know your client (and family if possible at these ages) and make sure your recommendation is suitable and in the client's best interest.

    I know that some agents have been burned before in certain states but otherwise, these cases are written daily. In this case, if income is really the need, there should be options once the surrender is gone.
     
  10. Tahoe Ray
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    Tahoe Ray Guru

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    Apples and hand grenades...
     
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