Sentinal Security Life SPDA Question

[West54]

Got a client that is being told she can get 3.2% guaranteed for 5 yrs. on a fixed annuity. Whats the catch? Seems pretty high to me.

 

[360]

Got a client that is being told she can get 3.2% guaranteed for 5 yrs. on a fixed annuity. Whats the catch? Seems pretty high to me.

No catch, that is the correct rate.

 

[mallison326]

how many years is the surrender charge

 

[senior-advisor-indiana]

how many years is the surrender charge

Excellent question. How does an agent know how long a 5 yr annuitys surrender charge is?Hmmmmmmmmm

 

[West54]

I found out that 3.2 is the rate but decreases with each rider attached like
10% free withdrawal
nursing home free withdrawal
terminal illness free withdrawal
and the big one no surrender penalties on death benefit

 

[nathan.lee]

Got a client that is being told she can get 3.2% guaranteed for 5 yrs. on a fixed annuity. Whats the catch? Seems pretty high to me.

Like 360 said...there is no catch...well not exactly.

The 3.20% rate is guaranteed for 5 yrs.
The "not exactly" part comes in the form of the various riders that can be attached at a fee.
RMDs, Free Withdrawals, Nursing Home, Terminal Illness, and Death Benefit are all additional riders with their own unique fee.
Another downside for some is that Sentinel carries a B++ rating from A.M. Best.

 

[marketing]

Like 360 said...there is no catch...well not exactly.

The 3.20% rate is guaranteed for 5 yrs.
The "not exactly" part comes in the form of the various riders that can be attached at a fee.
RMDs, Free Withdrawals, Nursing Home, Terminal Illness, and Death Benefit are all additional riders with their own unique fee.
Another downside for some is that Sentinel carries a B++ rating from A.M. Best.

Thanks, I was looking at this company for a client. Some good points

 

[nathan.lee]

Thanks, I was looking at this company for a client. Some good points

Glad I could help. That rate (3.20% for the 5yr.) is about to change to 3.10% on 08/10/2012. Also there is a .1% rate reduction in FL and a .2% rate reduction in MN.

 

[Tahoe Ray]

That FL rate also includes the death benefit. Since they normally charge 35bp for it, the rate in FL is actually better (assuming that the policy owner would otherwise buy the death benefit).