Different Marketing Idea-Annuity’s for Newborns!

[Norwayguy]

But how much do you make as an agent by selling a $1500 annuity? I guess any business is better than no business, but if it doesn't open the door to other possiblities and you just sold the $1500 annuity what would you make on that?

My quess is depending on carrier and product a range of $45 - $150. The other issue is which carriers will still accept a NQ application for under $2K heck under $5K.

Though I can see asking about this as a concept sale showing thinkning outside the box.

 

[0b1kanobee]

But how much do you make as an agent by selling a $1500 annuity? I guess any business is better than no business, but if it doesn't open the door to other possiblities and you just sold the $1500 annuity what would you make on that?

Not enough money to survive if that is all you are selling BUT what a great 'door opener' for other money. It all goes back to the saying "how do you eat an elephant?................one bite at a time." "You have to peel a banana to eat it" sorta principal. The money is made by finding other assets and cross selling. It is usually best to wait before cross selling for other assets. Once they see their account performing as told it would (usually a year later), they trust you with other monies. I have had people also say, "hey I got 50k over here. Got any ideas for it?"

 

[Ned]

My quess is depending on carrier and product a range of $45 - $150. The other issue is which carriers will still accept a NQ application for under $2K heck under $5K.

Though I can see asking about this as a concept sale showing thinkning outside the box.

Nation wide has a VA you can open for $400.00. Also presidential Life has an FIA you can open for $25.00 and takes $25.00 additions. Also Life of SouthWest has an EIA for $100.00.

The products are out there.
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Not enough money to survive if that is all you are selling BUT what a great 'door opener' for other money. It all goes back to the saying "how do you eat an elephant?................one bite at a time." "You have to peel a banana to eat it" sorta principal. The money is made by finding other assets and cross selling. It is usually best to wait before cross selling for other assets. Once they see their account performing as told it would (usually a year later), they trust you with other monies. I have had people also say, "hey I got 50k over here. Got any ideas for it?"

You got it. This works.

 

[Norwayguy]

Nation wide has a VA you can open for $400.00. Also presidential Life has an FIA you can open for $25.00 and takes $25.00 additions. Also Life of SouthWest has an EIA for $100.00.

The products are out there.
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You got it. This works.

Yes there are products...But you are incorrect on Presidential life...That product is a Fixed Annuity and not an FIA....For the projections to even come close you need a VA or a FIA with 80 percent participation no FIA I am aware of is anywhere close to 80 percent right now....Its a concept sale, sell the concept and branch out with other out of the box ideas.

 

[Franz Kafka]

If it seems like such a great idea, by all means break a leg with it. The idea is nothing new, the projection is misleading and the comp is not worth the gas money but then I've always been the pessimistic one.

 

[padthaiforlunch]

^ Which is why you need to boost the initial premium and get a trail on future premiums.

 

[0b1kanobee]

If it seems like such a great idea, by all means break a leg with it. The idea is nothing new, the projection is misleading and the comp is not worth the gas money but then I've always been the pessimistic one.

The comp is definitely not worth the gas money BUT it is the other business or money that you find. This is not a way to make money out of the gate. This is at a minimum a three year plan. If you make it to year four doing this, producing along the way, you'll never look back and your residuals are sweet let alone the book of business you will have.

 

[Bobrobb]

Imagine this to get a prospective clients attention! Or just something new to rework your book of business.

By funding an annuity with a single one-time gift of around $1,500 at birth; you could create a benefit greater than the projected social security benefit 65 years into the future ($4,300 per month). Compare that to the over $135,000 in Social Security taxes paid during a 40-year career by a person earning $50,000 annually. Through the power of long-term tax deferred growth, an annuity could provide a greater benefit than Social Security… but for only 1/100th of the cost.

Social Security is an involuntary 'pay as you go' system that collects money from today's workers and employers to fund the benefits of the current beneficiaries. Social Security benefits always have the possibility of being reduced or even eliminated, as well as being subjected to income offsets. You have no guarantee that today's level of benefit will even be in place in the future.

By comparison, an annuity is NOT a government program and it is independent from Social Security. The benefits of an annuity can never be taken away from the child. By putting the annuity in a trust puts your loved one in control of their financial future, not government officials. The assets in your child's annuity are protected from political turbulence. With this strategy, children will not be solely dependent on a governmental promise of benefits that may be changed or eliminated.

Alarming Facts:
 "By 2037, when workers [now] in their mid-20s begin to retire, the system will be bankrupt" (OMB – 2010 estimate)
If Social Security were to fail in 2037 as the Office of Management and Budget predict, your loved ones will be faced with an even a more difficult task of meeting their future needs. Use these facts to encourage the use of annuities as a savings tool for children and a simplified estate planning tool.

Assumes indexed increase of social security benefits of 2 1/2% per year

$1500.00 at birth. Assume 10.19% compounded till age 65 = $820,450.15

This can be used as a great ice breaker for clients with kids or grandkids and open the door to talk about other assets.

Great idea in so many ways except there is NO WAY you can go with 10.19%. I think the historical average of FIAs are 5.9 at the most. Also, FIAs that return more of compounded interest vs simple interest have lower caps and participation rates. Great concept however.

 

[Ned]

Great idea in so many ways except there is NO WAY you can go with 10.19%. I think the historical average of FIAs are 5.9 at the most. Also, FIAs that return more of compounded interest vs simple interest have lower caps and participation rates. Great concept however.

What is a matter with you people!!! 10.19% is the projection I give with a VA!!!!!!!!!!


I use a spread sheet and can adjust the caculation depending upon the product. This is not that hard people.
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Yes there are products...But you are incorrect on Presidential life...That product is a Fixed Annuity and not an FIA....For the projections to even come close you need a VA or a FIA with 80 percent participation no FIA I am aware of is anywhere close to 80 percent right now....Its a concept sale, sell the concept and branch out with other out of the box ideas.

You are correct, it is a Fixed, I misstyped. However they are considering creating a new FIA for this very purpose.

 

[VolAgent]

What is a matter with you people!!! 10.19% is the projection I give with a VA!!!!!!!!!!


I use a spread sheet and can adjust the caculation depending upon the product. This is not that hard people.
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You are correct, it is a Fixed, I misstyped. However they are considering creating a new FIA for this very purpose.

So what if you can illustrate 10.19%, will the client actually see it? That is the question.