SPIA Question

[CaptiveBroke(r)]

I have a prospect with about $350,000 that would consider rolling it over if it will give him more than what his company is offering him.

He is 63 and according to his paperwork, is being offered $2,000 monthly for life (before taxes - NY). What is bringing that number down for him is he wants his wife to collect the entire balance in the event of his death at any time, not a 10 yr certain nor 50% after death).

For any of you annuity gurus, where should I be steering this prospect or is he getting a better offer from his employer?

Once he takes the offer from his employer, the money cannot be touched...can he place is anywhere where the balance is still available?

 

[xrac]

I have a prospect with about $350,000 that would consider rolling it over if it will give him more than what his company is offering him.

He is 63 and according to his paperwork, is being offered $2,000 monthly for life (before taxes - NY). What is bringing that number down for him is he wants his wife to collect the entire balance in the event of his death at any time, not a 10 yr certain nor 50% after death).

For any of you annuity gurus, where should I be steering this prospect or is he getting a better offer from his employer?

Once he takes the offer from his employer, the money cannot be touched...can he place is anywhere where the balance is still available?

Have you investigated what life insurance would cost to replace the amount of money his wife would recieve. You may be able to replace the anuuity payment with the insurance money and he could draw the whole SPIA payment now.

Have you also looked at laddering this $350,000.

 

[Norwayguy]

I ran American National with a cash refund for a 63 male qualified funds for $350000 the monthly amount would be $1,857.31 I believe you want this for NY state and American National does not seem to offer products in NY (Which will be an issue for you with many carriers). However if he can get $2K per month I think you will be spinning your wheels.

My only other thought is if Phoenix is in NY they have a product with an income rider that provides a huge bonus and is designed for people looking to take income within the first three years. I don't have this company and don't know what if any death benefit is available or even if that product would beat 2k per month.

The other thing to consider is if this is a pension from his company it probably includes a COLA which is something few carriers offer in SPIAs and I'm not aware of a carrier offering a COLA and a cash refund.

 

[CaptiveBroke(r)]

Laddering is a good option. I emailed him last night and hopefully will find out about his insurability situation.

May be a good option to look into maxing out the pension funded with life insurance if he qualifies.

Will also check into Phoenix later on today. NY is a tough state with all its rules and regs.

Thanks, guys.

 

[bluemarlin08]

Isn't Phoenix rated B+ with Best?

 

[ScottLFB]

Phoenix has it's SPIA approved in NY, just none of its FIAs and Income Riders.