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The other issue comes in getting a correct illustration.
I want an NAC illustration that shows a payment for joint lives with a 10 year rollup.
NAC has a consumer facing website. I can go to that website, select joint lives, put in an annual payment, enter a from and to age that is a ten year period, and get a quote for an annual lifetime payment.
My agent is relying on a person at his annuity IMO to run the illustrations.
After 3 requests and attempts to rephrase them each time, I have three illustrations that only show 9 8% rollup periods instead of 10. Two are based on joint lives, the other is based on single life. No annual payments match the number from the quoter.
After the third one, I ratcheted down my anger quotient and called my agent, just catching him between clients. He is going to call a different annuity quoting person at that back office organization and see if he can get what I want.
Last night, after reading a Nationwide brochure that explained the basic issue at a high school language level, I learned what was going on, and then found the info buried in the NAC brochure. The NAC explanation was written at college reading level which I don't do so hot anymore and was also not as prominently displayed as in the Nationwide brochure.
When you are actually using one of these products you MUST be aware that the LPP payout factor you get to use is based on THE COMBINATION of the length of time the annuity has been held and the annuitant's age.
Each annuitant will have 2 ages in each annuity contract year.
Say you have the youngest annuitant in a joint life payout situation being age 75 after 10 years. They will show as age 75 on the 10th line of the illustration -- AT THE END OF THE YEAR. They will show as age 75 on line 11 of the illustration -- AT THE BEGINNING OF THE CONTRACT YEAR.
They were running the illustration as though the 75 year old was starting his 10 year payment during the last part of the 10th contract year. They need to be doing the illustration for the person being 75 at the beginning of the 11th year. That way BOTH the contract and the annuitant have aged 10 years since the contract was purchased.
I had this same issue with another agent and another carrier on an illustration a few months ago. Fortunately this agent was running his own illustrations, was able to understand what I was asking for, and got me the illustration I wanted on the second try.
Interesting tidbit of knowledge that came my way yesterday and today.
I want an NAC illustration that shows a payment for joint lives with a 10 year rollup.
NAC has a consumer facing website. I can go to that website, select joint lives, put in an annual payment, enter a from and to age that is a ten year period, and get a quote for an annual lifetime payment.
My agent is relying on a person at his annuity IMO to run the illustrations.
After 3 requests and attempts to rephrase them each time, I have three illustrations that only show 9 8% rollup periods instead of 10. Two are based on joint lives, the other is based on single life. No annual payments match the number from the quoter.
After the third one, I ratcheted down my anger quotient and called my agent, just catching him between clients. He is going to call a different annuity quoting person at that back office organization and see if he can get what I want.
Last night, after reading a Nationwide brochure that explained the basic issue at a high school language level, I learned what was going on, and then found the info buried in the NAC brochure. The NAC explanation was written at college reading level which I don't do so hot anymore and was also not as prominently displayed as in the Nationwide brochure.
When you are actually using one of these products you MUST be aware that the LPP payout factor you get to use is based on THE COMBINATION of the length of time the annuity has been held and the annuitant's age.
Each annuitant will have 2 ages in each annuity contract year.
Say you have the youngest annuitant in a joint life payout situation being age 75 after 10 years. They will show as age 75 on the 10th line of the illustration -- AT THE END OF THE YEAR. They will show as age 75 on line 11 of the illustration -- AT THE BEGINNING OF THE CONTRACT YEAR.
They were running the illustration as though the 75 year old was starting his 10 year payment during the last part of the 10th contract year. They need to be doing the illustration for the person being 75 at the beginning of the 11th year. That way BOTH the contract and the annuitant have aged 10 years since the contract was purchased.
I had this same issue with another agent and another carrier on an illustration a few months ago. Fortunately this agent was running his own illustrations, was able to understand what I was asking for, and got me the illustration I wanted on the second try.
Interesting tidbit of knowledge that came my way yesterday and today.