Annuities for CD Holders/seniors - Suggestions?

[Freddie]

I am trying to find some solutions for seniors looking for income.

It seems like everyone wants 5%, liquidity like a 6 month CD or money market. I know it does not exist.

I am running something from Nat West Life. Income Outlook plus 5. Assuming age 65, it has a 10% bonus, assuming 2 year deferral, maximum guar WD payment. $100,000 and a single person.

$6,973.31. This is pretty close to 7% (6.97%). One year deferral 6.64%.

I know once they start taking income it is pretty much a SPIA. Joint account $5,705.44 or 5.7%. 1 year defferal 5.43%.

Nat West is pretty solid. Any other suggestions?

Anyone have any other ideas that might be better? Thanks.

 

[TRSecurity]

There is an additional 5% bonus on that product for the income account which is a selling point for the "Plus 5."

When it comes to short deferral periods on income accounts, Forethought does ok, but this NWL product with the 15% income bonus is a top choice.

 

[Freddie]

Thanks. Forethought was the other. I sort of stumbled over this NWL rider and said hmm... This is sort of neat.

PS: I am not pimping NWL or any other product. I was just wondering if others had any other ideas. It seems like most seniors and others want a 7% CD today.

If they start the NWL income side, I need to see how fast they might burn through the accumulation side. I guess you can assume 3 to 4% on that side based on historical returns of IA's and the S&P 500.

 

[VolAgent]

PS: I am not pimping NWL or any other product. I was just wondering if others had any other ideas. It seems like most seniors and others want a 7% CD today.

And I want Megan Fox to come sit in my lap. Considering her hometown isn't that far away, it is vastly more likely to happen in the next few years.

The sooner you get them past the idea of a 7% CD, the sooner you can get them into a reasonable product.

 

[Erazz]

I am trying to find some solutions for seniors looking for income.

It seems like everyone wants 5%, liquidity like a 6 month CD or money market. I know it does not exist.

I am running something from Nat West Life. Income Outlook plus 5. Assuming age 65, it has a 10% bonus, assuming 2 year deferral, maximum guar WD payment. $100,000 and a single person.

$6,973.31. This is pretty close to 7% (6.97%). One year deferral 6.64%.

I know once they start taking income it is pretty much a SPIA. Joint account $5,705.44 or 5.7%. 1 year defferal 5.43%.

Nat West is pretty solid. Any other suggestions?

Anyone have any other ideas that might be better? Thanks.

In doing the calc. for Nat West I came up with $6641.25 w/ 2 year deferral and 10% bonus 5% roll up and a 5.5 payout. If this is correct than North American would provide more of a payout.
10% bonus 7.5% rollup and 5.5% payout = 6991.00

 

[padthaiforlunch]

With NA, the income rider fees are based upon the income account value and the fees are for the life of the roll-up and income stream. Not sure how NWL does it, but AE charges based on contract value and only for 10 years (longer if rider is renewed).

So be sure to think about how fast the contract value will zero out.

Also, the new Forthought policy allows the carrier the change the payout percentages if income is not turned on in X years.

 

[Charpress]

So many of these products are not only complicated in the first place, but they keep changing the features, as Pad points out.

I seem to get emails almost every day announcing a change in cap/spreads and rates. This is a worry for all of us from a liability viewpoint.

I think the really big deal is that the industry has had 2% minimum guarantees in place since --I don't know, the start of time. Now I have started getting announcements that the minimum guarantee is being reduced by some companies to 1.5%.

 

[TheKoenigGroup]

Freddie,

Do you live in Florida? Who are you contracted with them through?

I am trying to find some solutions for seniors looking for income.

It seems like everyone wants 5%, liquidity like a 6 month CD or money market. I know it does not exist.

I am running something from Nat West Life. Income Outlook plus 5. Assuming age 65, it has a 10% bonus, assuming 2 year deferral, maximum guar WD payment. $100,000 and a single person.

$6,973.31. This is pretty close to 7% (6.97%). One year deferral 6.64%.

I know once they start taking income it is pretty much a SPIA. Joint account $5,705.44 or 5.7%. 1 year defferal 5.43%.

Nat West is pretty solid. Any other suggestions?

Anyone have any other ideas that might be better? Thanks.

 

[Erazz]

The account value may be gone 10 years or later but if the client has the health you could put a life policy on him with a no lapse guar.. For a male 65 ns 100k for about 140/mo. The spouse could receive the 100 on his passing still giving them 210 month more to live on! That would give more income to her!

 

[HarryRenard]

I am trying to find some solutions for seniors looking for income.

It seems like everyone wants 5%, liquidity like a 6 month CD or money market. I know it does not exist.

I am running something from Nat West Life. Income Outlook plus 5. Assuming age 65, it has a 10% bonus, assuming 2 year deferral, maximum guar WD payment. $100,000 and a single person.

$6,973.31. This is pretty close to 7% (6.97%). One year deferral 6.64%.

I know once they start taking income it is pretty much a SPIA. Joint account $5,705.44 or 5.7%. 1 year defferal 5.43%.

Nat West is pretty solid. Any other suggestions?

Anyone have any other ideas that might be better? Thanks.

These products and riders are confusing for a reason and will only be good for a very small percentage of people.

Start selling the benefits of annuities not the rate of return.

Bring valuable information to the table and the clients will care less about what CD's and the stock market "used" to pay.

Trust me it really is that easy.