Single Premium Annuity Carrier Recommendation

[texaslady]

I just received a lead today, went in to replace a med supp, couldn't because she is on Aricept. Anyways, the son spoke about her CD in the bank that has 30K, and how they only take out $2,000 a year (and they only have a two week window during which they can withdraw that) to pay the property taxes on the house....

I mentioned an annuity as a better option, since the interest rate obviously sucks for a CD, and what with inflation and all. I have never sold an annuity though! I know about them, enough to carry on a conversation and possibly close a sale. I know about equity indexed vs. fixed.

This woman would want to roll over her 30K CD into a single premium annuity. I don't know if she would want to annuitize immediately or wait, since they only take 2K once a year (supposedly that's all they are allowed to take) on their current CD. However, they do need the additional income stream, it would help.

Please recommend to me carriers that would offer a competitive product, possibly with a bonus. Also, how much commission should I look for/expect? Any advice would be greatly appreciated! I am meeting with them Monday!

 

[VolAgent]

First go back and do a fact finder. Too many unanswered questions.

You ought to know exactly what she wants to do with the money now and in the future. Sure, it'll change, but you need to know what she has in mind now. Otherwise you are just shooting in the dark.

 

[texaslady]

First go back and do a fact finder. Too many unanswered questions.

You ought to know exactly what she wants to do with the money now and in the future. Sure, it'll change, but you need to know what she has in mind now. Otherwise you are just shooting in the dark.

They need additional money coming in each month ASAP. She is relying on her social security alone (and her husband's, he passed away a few years ago). The unemployed son lives there as well, and he makes all the financial and insurance decisions. He said they have had tight months before.... This money is just sitting there....

 

[tins]

Call any carrier before you do anything. Her being on Aricept is a big big problem and auto-decline for most (if not all) insurance when it comes to life and health. I do not know enough regarding annuities to know what problems it poses. But if she does have any kind of diagnosis of alzheimer's or dementia, it could void any contract she signs. Tread carefully.

 

[VolAgent]

Call any carrier before you do anything. Her being on Aricept is a big big problem and auto-decline for most (if not all) insurance when it comes to life and health. I do not know enough regarding annuities to know what problems it poses. But if she does have any kind of diagnosis of alzheimer's or dementia, it could void any contract she signs. Tread carefully.

Good catch. The contract might get approved, but the son could easily turn it on you that you took advantage of his mother later on.

 

[Hopwood04]

Definitely get the son involved. You may look at National Western Life. They have several annuities that have waiver of surrender penalties if the annuitant becomes confined in a nursing home for more than 90 days.

 

[0b1kanobee]

I can help you but I need to know how old she is and where the money came from (IRA or what) but her age would get me enough information to help you. I already ran it at 70 y.o. as a guess and I can get her 2,000 a year for life and an enhanced death benefit for the son.

If she is older than 70 I can get you more and I can also look at a double the benefit for LTC rider which would be $4,000 a year vs. $2,000

Get me her age and then we can talk privately if you like.

Your looking at a nice commission and a happy client even with my 20% FEE LOL

 

[senior-advisor-indiana]

Yeah I bet you want to talk privately...
Hey texaslady, how do you possibly have all these questions? How long have you been in the business.

 

[ScottLFB]

First, find out more information on what the client actually is looking for. You say that money is tight and they are looking for additional monthly income.. OK, but aren't they using that interest off the CD to pay for the property Taxes? There are options to annuitize a product right away or create a lifetime income stream while keeping the cash account flexible, but you have to help them create the whole plan not just turn the $30K into immediate cash flow. The next major hurdle you're going to have is that if her net worth is that $30K CD + Social Security, you're going to have trouble with the carriers trying to tie up the client's only liquid assets..

And.. Leave the LTC option out of this equation.. Don't sell an annuity that small on the basis that if you end up in a nursing home or LTC facility your annual benefit will double... What good is $4k going to do her vs. $2K??? She's going to end up having to surrender the policy during the 180 day period she's waiting in the nursing home for this "doubler" benefit to kick in if she doesn't have sufficient LTC coverage to begin with. The Confinement Doubler only benefits a client that has $2-300K+ in the policy so the doubler will actual cover most of the LTC costs..

 

[texaslady]

I can help you but I need to know how old she is and where the money came from (IRA or what) but her age would get me enough information to help you. I already ran it at 70 y.o. as a guess and I can get her 2,000 a year for life and an enhanced death benefit for the son.

If she is older than 70 I can get you more and I can also look at a double the benefit for LTC rider which would be $4,000 a year vs. $2,000

Get me her age and then we can talk privately if you like.

Your looking at a nice commission and a happy client even with my 20% FEE LOL

She is 80 years old....