New Agent Wants to Fund his Children's Annuities.

rndz7

Guru
100+ Post Club
339
NJ and FL
I would like to contract with an IMO and fund my son and daughters annuities.
I have a life lic in NJ and am a retired IRS agent.
I would like to start with the smallest amount possible for each.
As my agency grows from Life insurance sales , annuity sales and Income tax prep, , I can increase the funding amounts.:GEEK:
Any advice is much appreciated.

Don NJ :GEEK:
 
You definitely want flexible premium. Give Jason a call over at carriercontracting.com. He chats from his website about such matters - Great free advice and some great carriers to contract with. Good luck.
 
Again Jake. The information you and others share on this Forum is a god send.
The point made tonight, about the middle class suspects liking well known insurance company names, is a hit. I'll contact carrier contracting.com on Monday. The other tip about getting a partner and referring each other for biz....OMG. ....A half a loaf is better than none....You go Big Jake !:D
 
Your welcome. Not just half-loaf necessarily, just trade leads. A SMART Medicare Agent would love to work with an FE agent, which is why a lot of them try to sell both, and vice verse. Wouldn't you love to call on someone who just bought a Medicare supp from your friend?
1) It will not be hard to gain trust
2) You know they have a checking account (hopefully with money in it)
3) You can pre-qualify for the underwriting, knowing in advance what you have to offer them.

You just need to know the state laws and stay compliant. Of course observe HIPAA where applicable:GEEK:
 
I am not sure what kind of issue? But a minor cannot enter into a contract without parental consent. You can purchase or give an annuity to a minor child. You have to make the transaction in compliance with the Uniform Gift to Minors Act or the Uniform Transfer to Minors Act. UGMA and the UTMA are custodial accounts that allow parents to gift children funds from the moment of birth. An adult is the custodian of the account. UTMA assets transfer to the child when he reaches a specified age set by the state; in many cases it's 21, but it can extend as far as age 25. The UGMA normally ends and the assets transfer to the child at age 18.

Unless the child takes a substantially equal payment based on his life expectancy every year or becomes disabled, there's a penalty if he removes the funds before age 59 1/2. Thus the deferred annuities are a sound option. Each carrier will have housekeeping rules on how to enter social security numbers and arrangement of annuitant and custodian.

Hope this helps.
 
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