I have a client who is looking to start income in a year. Which company would offer the most lifetime income in your opinion. He will be turning 66 in a year from January and that's when we want to turn on the lifetime income.
JoeAnnuity
Expert
- 31
Forethought usually has the highest guaranteed income in the 1st and 2nd years.
- 106
What State Does Client Live In....
I have a tool that will rank 160+ FIA's guaranteed payouts based on age, gender, state, premium, and years deferred. Shoot me a PM with the client's info and I'll run it for you, it's great to be able to show the client that you're giving them the best bang for their buck in a clear, easy to read chart.
- Thread starter
- #5
He lives in Georgia.
Life only SPIA nets 7161/yr (american national). Adding a refund feature drops you to 6585 (genworth). You can probably get a number of FIA quotes from your FMO but F&G would come in around 6240/yr. American General will start out much lower (5564) but will eventually pass F&G and come in at 6500 guaranteed by year 10. Lots of options....
Sara Rostami
New Member
- 8
You would need to know how much income he would need to generate and how much money he can afford to put into an annuity. Once you have that information you can start looking for the right product for your client. National Life Group has a product called FIT Guaranteed Income. 14% upfront bonus and 7% interest every year until the GLIR is turned on.
- 4,883
Sure hope you disclose more than this to consumers. like the bonus has no impact on Accumulation value & that it only impacts their benefit base income calculation if they ever exercise the income component. Hope you also share the GLIR has a cost to add to the contract.
Also, I believe you are incorrect that it earns 7% interest every year until the GLIR is turned on. The account merely earns interest credit each year based on the cap and participation rate of the index crediting method. The 7% you mention is not an interest rate, it is an annual simple rollup of the benefit base of the GLIR that may or may not ever be paid out depending on the clients need for income.
Great product for clients needing income, I am just thinking you might need to disclose a couple more details. This is exactly how most seniors get led to believe they are guaranteed a 7% rate of return on their money. But maybe you assumed the person that posted the question would know those other items
- 17,041
Yes! So much room for misunderstandings with these.
I explain them as two accounts. One is REAL money. One is imaginary money. The imaginary one is the one with the 7% each year. But it wouldn’t matter if it was 15% each year. No difference. It’s just a factor to determine how much income you can turn on each year for life. The only number that matters with that one is your income number. You can never walk away with that account.
The other account is your REAL money. That is money you can eventually walk away with.
Keeping the presentation real has never blown a sale for me. But it keeps life simpler 5 and 10 years down the road. I’m writing an annuity today that is to a guy I sold one to 4- years ago. He wants more now and called me. That would never happen if I let him think he was going to really get 7% interest every year.
Sara Rostami
New Member
- 8
Yes of course I disclose all the information to my clients. I make sure that each of my clients understand every aspect of the product they are getting before they fill out the application. In fact I even have the client explain it back to me to make sure they understand the products, this doesn’t happen with one meeting. I usually meet all my clients 3-4 times before going through the application. I have a very honest relationship with my clients.
