flexible premium deferred annuity

[myinsurebiz]

Want to be able to show people an easy way to Buy Term & Save The Difference . . .

I have the Term side figured out.

We are going to be marketing to younger folks and lower / middle income prospects.

A forum Member mentioned the company / product below. The principal is safe and earns a minimum 1.5% and possibly more. Has the normal withdrawal limits and fees. But - the idea is to "save" money for retirement.

I'm interested to learn if their are similar Annuity products available with small initial deposit and small periodic deposits - weekly / monthly?

Product needs to be able to be marketed by someone with just a Life license - not Securities.

Thanks in advance ( be nice ) . . .

https://www.federallife.com/wp-content/uploads/2016/11/L-7462.pdf

 

[DHK]

MassMutual Odyssey Select:
https://fieldnet.massmutual.com/public/ann/pdfs/an6601.pdf

One MAJOR advantage to this product: surrender charge schedule is based on contract years, not the year of premium payments.

So, if you set up a contract with $1,000 to start and $50/month... after 7 or 9 years, the entire contract will have no surrender charges. That means you can move the money once the surrender charge period is over.

However, if you did that with a contract that has surrenders based on premium payments, you'd have to wait 7-9 years (or whatever) since the LAST payment into the contract to be completely free of surrender charges.

 

[Allen Trent]

normal withdrawal limits and fees

No such thing as 'normal'. Every product type & variation has its own design differences depending on if it is a fixed or index or MYGA, etc, etc.

You will spend 5x more of your time with client on this save the difference & make little to no compensation for that time & likely incorrectly advise them. Just refer them to someone that only does the investing part who is an expert in their field. For the most part, just tell them to go to their HRD dept & increase their 401k deposits. If you are talking about $50 to $300 or $400 per month, best place they can save is in their employer plan to get tax deduction, matches, low fees.

There is almost no money in systematic savers for the annuity advisor anyway & you clearly have a ton to learn before directing toward products. Honestly, no offense intended

 

[Allen Trent]

MassMutual Odyssey Select:
https://fieldnet.massmutual.com/public/ann/pdfs/an6601.pdf

One MAJOR advantage to this product: surrender charge schedule is based on contract years, not the year of premium payments.

So, if you set up a contract with $1,000 to start and $50/month... after 7 or 9 years, the entire contract will have no surrender charges. That means you can move the money once the surrender charge period is over.

However, if you did that with a contract that has surrenders based on premium payments, you'd have to wait 7-9 years (or whatever) since the LAST payment into the contract to be completely free of surrender charges.

Doesnt this have a $4,000 minimum to get it started? Or if you set up a systematic deposit it allows for a lower initial deposit

 

[DHK]

Looking at it now, I can't tell. We can *assume* that it's $4,000 to start and $50/month automatically OR $1,000+ non-periodic purchase payments.

Now, if he got a Series 6 and with a broker/dealer, he could work with American Funds and do a $25/month periodic investment program.

 

[Allen Trent]

Looking at it now, I can't tell. We can *assume* that it's $4,000 to start and $50/month automatically OR $1,000+ non-periodic purchase payments.

Now, if he got a Series 6 and with a broker/dealer, he could work with American Funds and do a $25/month periodic investment program.

Yeah, 20 pages worth of BD forms, suitability forms, account registration forms & then the 10 pages of American Funds account for 50-75% of 5.75% of $25 a month (93 cents per month commission). This would be after passing the exams & registering. Sure, I see him having the patience for this for 5, 4,3,2,1 & squirrel.

Just refer the savings component or Sell max funded UL, IUL or WL/PUAR

 

[myinsurebiz]

MassMutual Odyssey Select:
https://fieldnet.massmutual.com/public/ann/pdfs/an6601.pdf

One MAJOR advantage to this product: surrender charge schedule is based on contract years, not the year of premium payments.

So, if you set up a contract with $1,000 to start and $50/month... after 7 or 9 years, the entire contract will have no surrender charges. That means you can move the money once the surrender charge period is over.

However, if you did that with a contract that has surrenders based on premium payments, you'd have to wait 7-9 years (or whatever) since the LAST payment into the contract to be completely free of surrender charges.

What is the minimum to start? That is the key.

 

[DHK]

I think it's probably the $4,000... but you can always double-check with your local GA or get with an IMO that offers MassMutual.

 

[myinsurebiz]

Looking at it now, I can't tell. We can *assume* that it's $4,000 to start and $50/month automatically OR $1,000+ non-periodic purchase payments.

Now, if he got a Series 6 and with a broker/dealer, he could work with American Funds and do a $25/month periodic investment program.

I'm not looking to make any money on the "Savings" side.

We would have no issues referring that out.

 

[DHK]

For those small dollars, just send them to Fidelity, E-Trade, TD AmeriTrade, or even Sharebuilder. Just don't give any advice on WHAT to invest in.