Carrier Bonus/Tax Make Up

[proadvisors]

Looking for 2nd carrier on a large deal with a good walk away Bonus. Basically from my calculations there will be a cap gains tax of roughly $13,000 on a $800,000 move.

I am thinking of possibly moving a additional $200,000
or so OR using $600,000 in current annuity and $200,000
in another one to make up the cap gains tax in a bonus.

I know Allianz has 20% bonus BUT that's only on income portion
this client will not need income.

 

[Tahoe Ray]

Looking for 2nd carrier on a large deal with a good walk away Bonus. Basically from my calculations there will be a cap gains tax of roughly $13,000 on a $800,000 move.

I am thinking of possibly moving a additional $200,000
or so OR using $600,000 in current annuity and $200,000
in another one to make up the cap gains tax in a bonus.

I know Allianz has 20% bonus BUT that's only on income portion
this client will not need income.

I am assuming that you're recommending selling securities for this sale...are you licensed to do so?

There are a number of carriers that could provide a true bonus to off set this gain easily but we would need to hear more about your client's objectives to offer any realistic options.

 

[proadvisors]

I dropped my series 6.

I held it for many years.

I am looking at comparisons now.

I may go Master Dex 10 plus but if someone has a good carrier
then with a great contract I could place 200k with your
carrier.

Client is 68 female.

Has no debt.

Income of roughly $15,000 month

1.165 million in muni bond funds.

Another $500,000 in liquid investments

$200k in checking

Goals are passing money on to the kids and
safety.

 

[Tahoe Ray]

I dropped my series 6.

I held it for many years.

I am looking at comparisons now.

I may go Master Dex 10 plus but if someone has a good carrier
then with a great contract I could place 200k with your
carrier.

Client is 68 female.

Has no debt.

Income of roughly $15,000 month

1.165 million in muni bond funds.

Another $500,000 in liquid investments

$200k in checking

Goals are passing money on to the kids and
safety.

Is your client insurable? If not, have you looked at Great American?

 

[proadvisors]

She is insurable. Not really looking to do spwl or the like.

 

[Josh Landis]

She is insurable. Not really looking to do spwl or the like.

I assume the client is in TX?
It sounds like an IUL might be a good fit for this client. However, I would give a strong look to.

Sagicor - A- rated, 5% bonus, 4% annual cap (guaranteed minimum cap) or uncapped strategy with 20% par rate, 10% withdrawals.

I would also consider Great American, A+ rated, while they don't have a bonus on their Safe Return, it has some of the higher caps at 4.25% with annual reset on accumulation and a death benefit rider at 7% for 15 years

There are some solid IUL's that will give you a over a 10% bonus and much higher caps than an annuity, have withdrawals and provide a bigger death benefit. It sounds like this might be the best solution for your client. If you want some options, let me know.

 

[proadvisors]

Great American annuity huh? Sounds like a good product.

 

[anonymous1]

Why not a spwl. Sagicor annuity is grat but their spiwl Is better caps are 7% sp. and 25 part for global plus all gains are tax free to the kids 10% bonus on the money too 100% return of premium

 

[Josh Landis]

It is a great product, it also has a ROP feature, so if 2 years from now caps go way up, then the client can take the money and put it somewhere else (meaning if she put in $200k, she can take out $200k - true return of premium feature - no surrender charges).

 

[cloisbarton]

I dropped my series 6.

I held it for many years.

I am looking at comparisons now.

I may go Master Dex 10 plus but if someone has a good carrier
then with a great contract I could place 200k with your
carrier.

Client is 68 female.

Has no debt.

Income of roughly $15,000 month

1.165 million in muni bond funds.

Another $500,000 in liquid investments

$200k in checking

Goals are passing money on to the kids and
safety.

MasterDex 10 Plus is not a walk away bonus product (only at death) - A 10% bonus on premium received in the first five contract years. To receive the bonus, you must hold this annuity in deferral for at least five contract years, then take annuity payments over a minimum of 10 years.

If you are looking for a bonus walkaway product then here are some:

American Equity 8% bonus that vest over 10 year, but full accumulation at death

Equitrust has 6% bonus

North American 5%

Athene 2% bonus or 6% bonus

Great American Valor II has bonus of 2%

Masterdex X has a 5% bonus

National Western has a 5% bonus but vest over 10 still full accumulation at death

So, those are the bonus product then you take these an run down the caps.

Athene and Great American offer the best caps out of the group...

I did not see how old the client was in the post...depending on this I might have one other option to look at...

Also, you mentioned that the purpose of the money is safety and to pass to kids, so depending on her age you might want to look at a product that has death benefit rider attached.

Just thoughts - let me know if you need anything else.