New Phoenix Income LTC Legacy Annuity Vs Allianz-American-Equity-Aviva Balir

[infoseeker]

How does the Phoenix new product which is the Personal Protection Choice Annuity compare to Allianz - American Equity and the Aviva Balir as far as guaranteed income. the Personal Protection Choice Annuity is the only annuity out there that offers guaranteed income for life which you can strat and stop LTC maximizer with a 250% increase and a increased death benefit.

My client is 65 and just started taking SS because he needsincome. He has about 150k in CDs. He has no other sources of income only SS. no pension. Hehas no other assets except 100k which he will be buying a very small house for about75k cash of the 100k to retire in. The only other source of income is a parttime job which he will be leaving in about 6 months. He has no LTCprotection which he would like to have but the premiums would cut into hisincome. He does have a daughter that he would like to leave some money to butincome is his number 1 concern. He will need income within 1-2 years. The Phoenix Personal Protection Choice product which I showed him, heliked the best because it offers all 3 Income ltc and a death benefit which isthe first illustration. The other 3 product Illustrations are from Aviva-Allianz and American Equity. What is the difference in these products? They all are showing similar Income benefits.

I was thinking of recommending the Phoenix product becausehe can have a lot of flexibility he can start and stop income, has a LTCbooster and a death benefit maximizer. I included the brochure. I was thinkingthe strategy of putting 100K in the Phoenix product and 50k in a deferredannuity which he can draw income in 5 -10 years so that the 50k can grow untilhe needs it, so in 5-10 years he can either take the 50k which will have ahigher value at that time and roll it into a immediate annuity or just get aannuity with an income rider. I guess having a laddering approach. I can dothis with either Aviva- Allianz and American Equity. I know anotherstrategy could be the Lincoln moneyguard but there is no income from thatproduct. I want to know what are the best products and solutions to maximize his incomewhile having some ltc protection.

He has no debt, no loans outstanding is completely debtfree.

I know phoenix has a b+ rating but i did research into the company and they have improved their financials dramatically in a short period of time. But still have a positive and stable outlook from the rating agencies and seems like they can get a A rating with contiued imrpoving financials . i did notice they have quadrupled their annuity sales in the past year.

[FONT="Calibri","sans-serif"] Appreciate anyfeedback you can give me[/FONT]
[FONT="Calibri","sans-serif"]
Here is the brochure on the phoenix product:[/FONT]

[FONT="Calibri","sans-serif"]http://www.phoenixwm.phl.com/servle...ersonalProtectionChoice_A5107BR.pdf&DocType=0[/FONT]

 

[francodevivo]

Infoseeker. The phoenix is a good product, but here are some things to consider. Is income amount most important? Or is the death benefit the biggest concern? Most death benefits pay out the income value rather than the cash value, so the beneficiary gets a bit more money, paid out over time.

The biggest issue you will encounter for this is that you client is 65. the income riders are due to run you out of cash by age 85. so in 20 years, there will very little, if anything left in the account for a death benefit. I'm happy to talk more at length if you need and discuss other options. Best of luck.

 

[infoseeker]

Thanks for getting back. Good point. what is great about this product is i caneliminate the death benefit rider to prevent the depletion of cash value. It isvery flexible with what riders you can add . He needs Income and LTC protectionso i don’t know of another product or solution that can provide that withoutpaying premiums for ltc. what i love about this product that is no matter howmany years he takes income if he has a LTC event he has as much as a 250% 5year ltc maximizer benefit that they will give him a LTC cash benefit to dowhatever he wants with it than after 5 years he can still collect his incomesame as usual. So for ex. if he is collecting $1000 a month for Life if heneeds the ltc benefit he will than get $2500 a month instead of $1000. After 5years of collecting the $2500 LTC benefit stops and he will continue with the guaranteedlifetime income benefit of $1000. So its almost like he is getting LTC forfree. What do you think? Is there abetter solution? i appreciate your feedback

Thanks Greg

 

[francodevivo]

I agree with you on the LTC benefit. Not too many companies do it at all, and the 2 or 3 who do, offer a doubler. F&G, Lincoln Financial and Aviva all have LTC benefits to them. What you should look at, Greg, is the amount of money for the income, as that sounds like priority #1 starting in 2 years. At age 67, you are looking for between 608 a month to 855 month. Phoenix will fall somewhere in the 700 a month range. Which is great.

The only thing you said that caused concern is the depletion of cash. Maybe i read it wrong, but no matter what the company is, in the fixed space, once you start drawing money, your account goes down by that amount every year until its gone. There will be no cash in 20 years or age 85. They will pay him for as long as he lives, but once that premium is gone, there is nothing left.

As far as a better solution, there might be. All companies do it differently, Aviva is a 13 month hold until it can take place, and you can turn it off and on again as you need when you are in the home, but you have to be in the home 180 days. Average stay in a home is probably around 3-5 months.

I would think go with the largest monthly income you can get with a company that has LTC. I love the Phoenix product, don't get me wrong. The only thing I would look at is the payout percentages and find out what pays the highest (which I'm assuming your client would want) and has the LTC rider.

Franco

 

[infoseeker]

thats great feedback. how would you use these 3 carriers in what type of income sitiations? Allianz- American Equity- Aviva or any other carriers when it comes to income? Do you factor in a death benefit. i know it depends on the needs of the client. Any other carriers you like for income. Do you combine carriers in a laddering approach say someone who is 55-60

thanks again

 

[francodevivo]

Allianz I would use in 2 situations, typically someone who wants income soon with inflation protection or the ability to increase their payout over time, and someone who wants to use free withdrawals to maximize dollars out on annual basis.

American Equity has a good products line, I typically find they are a great fit for those looking for a SPIA or joint payout.

Aviva I would use for the LTC benefit and the income doubler.

Lincoln Financial is consistently up there for income as far as payout percentages. They have an LTC rider as well, but instead of doubling, the payout percentage goes up to 10%.

Death benefits are a whole different client need in my book. You either want to use the money or leave it behind. It's not easy to do both. If someone wants a death benefit, I'd consider a company like Assurity, who does a simple issue SPWL and gives a tax free DB, has good cash value, and in most states, a LTC benefit as well that pays out a max of 5K a month, depending on your premium.

 

[infoseeker]

Re: 400k case New Phoenix Income LTC Legacy Annuity Vs Allianz-American-Equity-Aviva Balir


Thanks again for great feedback. If you have a 58 year old female client thathas about 400k in cash and needs income but would like to also haveaccumulation value would you use the ladder approach where for ex. have 200kannuity with one company and 100k with another and 100k with another to maximizethe income over time? With deferred annuities that may have different termlengths? They would some income within 1 year.

Would you use different companies for this type of situation?

One product i was thinking of is the Aviva Balir stacked growth. i was on awebinar and supposedly this product beats out any product on the market becauseof cpi /inflation option as well as guaranteed 5-6% with no cap.

Another product i was looking at which seems similar as far as maximizinggrowth and cash value is the Allianz 360 which looks like it has a lot ofgrowth potential as well.

Trying to decide how Allianz 360 and Aviva Balir stacked growth differs andhow you incorporate these companies into a situation like this. I guess Americanequity can be for immediate income? I know Allianz has an increasing incomewhich I like. I was also thinking of putting her in a IUL that would generateabout 20k of income for her in loans after 20 years tax free.

Don’t know if my thinking is on the right track what do you think?

Allianz I would use in 2 situations, typically someone who wants income soon with inflation protection or the ability to increase their payout over time, and someone who wants to use free withdrawals to maximize dollars out on annual basis.

American Equity has a good products line, I typically find they are a great fit for those looking for a SPIA or joint payout.

Aviva I would use for the LTC benefit and the income doubler.

Lincoln Financial is consistently up there for income as far as payout percentages. They have an LTC rider as well, but instead of doubling, the payout percentage goes up to 10%.

Death benefits are a whole different client need in my book. You either want to use the money or leave it behind. It's not easy to do both. If someone wants a death benefit, I'd consider a company like Assurity, who does a simple issue SPWL and gives a tax free DB, has good cash value, and in most states, a LTC benefit as well that pays out a max of 5K a month, depending on your premium.

 

[francodevivo]

Greg, my email is [email protected] and my office number is 770-973-4449. Get in touch and we can run through a few scenarios.

Franco

 

[infoseeker]

Sounds great Franco. appreciate it. i will call you today or tommrow if you are avalaible

Greg, my email is [email protected] and my office number is 770-973-4449. Get in touch and we can run through a few scenarios.

Franco

 

[AllGold]

Re: 400k case New Phoenix Income LTC Legacy Annuity Vs Allianz-American-Equity-Aviva Balir

One product i was thinking of is the Aviva Balir stacked growth. i was on awebinar and supposedly this product beats out any product on the market becauseof cpi /inflation option as well as guaranteed 5-6% with no cap.

I love the Aviva/Annexus BALIR with the stacked growth option and I think it's hard to beat for deferred income. But take a closer look because it's not guaranteed at 5-6% with the SGO.