Variable Annuity Ideas -- Client

[KJ in Miami]

I totally agree as have seen people who made minute returns even when the s&p made 11.7%.

If you sell Indexed annuities you are doing a disservice to your customers!

 

[bluemarlin08]

Looking at something a "fee only" advisor recommended to a client, Transamerica Elite VA. Their income rider has a lower payout than some FIA, 5% roll up and a 5% payout at 10 years, however, they are using a gross interest assumption on the regular account of 8% and a net of 4%. A very substantial death benefit using these assumptions. Is the death benefit a taxable event at death? Do any of you sell this product?

 

[Larry Tew]

Looking at something a "fee only" advisor recommended to a client, Transamerica Elite VA. Their income rider has a lower payout than some FIA, 5% roll up and a 5% payout at 10 years, however, they are using a gross interest assumption on the regular account of 8% and a net of 4%. A very substantial death benefit using these assumptions. Is the death benefit a taxable event at death? Do any of you sell this product?

Generally, yes... but there are some fine-tuning opportunities depending on the beneficiary and whether the annuity is qualified or non-qualified.

Here is an article that addresses it - Are annuity death benefit proceeds taxable? | Taxes & Annuity Death Benefits

 

[Norwayguy]

Best Variable Annuity
What is the difference between a variable annuity that pays a dividend mutual funds?
A variable savings annuityis Deferred tax vehicle. During a period of time, your money can grow and can withdrawit as desired (the accumulation phase) are given money at fixed intervals during the payment not be altered. The amount paid during the payment may be fixed or variable. During the phase of accumulatuion you invest in a small menu of funds investment. In a dividend payment of funds. They tend to invest in stocks that tend to pay divididends, and with each payment of dividends, they pay taxes. In the annuity variable, you can invest in the payment of a dividend mutualfund, it is fair that the dividends paid by the finding get reinvested.

OR

Best Variable Annuity
Although pensions are indexed to equity have been around a number of years the life of universal equity indexed (EIUL) insurance is a newcomer to the life insurance market. EIUL is a twist on the universal life (UL) insurance, a kind of political popular because it may increase or decrease your death benefit according to their needs and premiums can be adjusted accordingly. UL policies strengthen also the cash value against which you can borrow, or even be used to pay premiums.
The concept of equity indexed is relatively simple: the amount of interest paid on the redemption value of your contract is tied to the evolution of a given index (the S & P 500 is one of the most popular), so that in years when the index is made against the allocation of rising interest rates, and in the years when the index is wrong, your credit rate of interest will fall.
Most policies guarantee that the rate Credit interest will never fall below zero, you will not lose money (you do not). They also limit a high rate of accreditation to you. This range of possible rates is often described as providing "protected upside down."
How it works?
Usually, the election to buyers of life insurance is whether to go with a "box" universal life insurance offers a guaranteed minimum rate, but limited potential to accumulate cash or go with more "edge the abyss "variable life offers more opportunities to earn money, but no protection against market losses.
EIUL insurance is a attempt to bridge the gap between these two approaches. EIUL is universal life insurance where the cash value is tied to an index. If the index is higher at the end of the year, your cash value up in May. If the index stays flat or falls, the value of your money Cash receives an interest rate guaranteed minimum (eg 2 percent). Admittedly, however, when the index rises, it means that the increase in cash value will reflect the full rate increase, due to expenses and dividends and capital gains are not included in calculating the cash value is.
But these new products in the best of both worlds? Let both sides of the coin.

Best Variable annuity and then you don't even discuss variable annuities heck you don't even mention annuities but instead life insurance.

 

[Larry Tew]

She must be DeniseM's twin sister.