Immediate Annuities Website

Dec 6, 2018

  1. AboutThatLife
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    AboutThatLife Guru

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    There is a website called immediateannuities.com that claims that the insured goes and selects their own annuity and promises "no agent will call you"? How is this possible? Can the customer go from start to finish without contacting an agent?
     
  2. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    No agent calls if you just get a quote. That is what they are referring to.

    If you actually choose an annuity and go through the screens and enter your personal info, you will be called by a single agent to complete the sale.

    And if you are considering an annuity, Id hope you would speak to an expert on this forum and not some rando on the internet!

    Also, immediate annuities or ok, but many consumers prefer the flexibility of an Income Rider on a Deferred Annuity, vs. a true Immediate Annuity. The Income Rider does the exact same thing, but allows you to keep liquid access to your funds for about 12-18 years. Tons more flexibility.
     
  3. Allen Trent
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    Agree with everything you state, except I wouldn't say Income Rider does the "exact same thing", I would say it does nearly the same thing. If I understand correctly, the taxation of a NQ SPIA compared to a NQ income rider will be taxed differently each year. with a NQ SPIA, you are receiving back a portion of your principal in each check and the exclusion ratio excludes that from being reported as taxable throughout the duration of the SPIA checks until you have recovered your original principal. at which time every NQ SPIA check becomes taxable.

    I may be wrong, but I don't believe income riders work in that manner & they are taxes like deferred annuities in that they are LIFO( Last In First out), meaning all deferred interest in the contract or previous contracts 1035 exchanged over the years will have to come out fully taxable first before you can get to your Tax Free Cost basis/Principal.

    Likely not a big deal to instead choose SPIA over Income rider, but I can think of some situations where minimizing taxable income for a period of time could be beneficial depending on tax bracket. Many agents in our industry misunderstand Principal in carriers contract at time of purchase versus cost basis that could have been started back in the 1980s & 3 or 4 carriers over the years while in deferral.
     
  4. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Yes, there is always the considerations between NQ and Qualified funds.
     
    DHK, Dec 6, 2018
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  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    I was making a generalized statement there. Basically telling him to consider this as an alternative if he wants a guaranteed lifetime income.

    If the funds are NQ then there are the tax-considerations you mention. But most people buy them for benefits other than taxes. The exclusion you get can be minimal considering the benefits of an Income Rider. It all depends on how much you are talking about and the clients needs. My point was more to get the OP to consider it as an option and compare pros/cons.
     
  6. Tahoe Ray
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    Tahoe Ray Guru

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    You can write Lincoln's i4Life and get an exclusion ration without annuitizing...
     
    Tahoe Ray, Dec 7, 2018 at 12:18 AM
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  7. Allen Trent
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    Yeah, not 100% sure why, but I am told VA can. Likely has to do with it being considered annuitized where other income riders are not. Either way, income riders tend to be a much better choice for most all consumers over SPIA, especially with the low SPIA rates in today's low interest rate environment
     
  8. FexBids
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    According to

    Is it Possible to Buy an Annuity Direct Without an Agent?

    if I'm reading it correctly, someone can buy a variable annuity on line without an agent but not a fixed annuity.

    Even the author of the article seems mystified why a complex annuity can be purchased on line without an agent but not a fixed annuity.

    tinman
     
    FexBids, Dec 11, 2018 at 10:42 PM
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