- 11,457
Hopefully, he got himself a new prospect.
Who Has the Most Leinant Suitabillity?
- Thread starter taz
- Start date
NPCOACH
Expert
I am admittedly late to the dance on this one, nevertheless, a few thoughts.
First, this lady has 77% of her life savings in annuities. That is already a ridiculous amount for such a small asset pool. 23% liquid on $1,000,000 might be acceptable, but not on 135,000. No reputable company will/should touch that.
Second, it is always hard to justify a 4.5% hit, but possibly a bonus product might mitigate that. A 6 or 7% bonus would cover her charges, though that doesn't address the liquidity issue.
3rd, at her age, regardless of the income rider, no company is going to let her receive much more then a 5% payout on the income rider. She can already take 5% a year now, and do so for the next 20 years, even with a zero % return for 20 consecutive years.
You don't mention the current carrier, how long she has had the current contract, or what it is paying. How long before the end of surrender charges? What are the investment options of the current contract? Is it an indexed annuity? A variable?
What is her current income? Does she have a pension, social security or other income sources? This might help mitigate the hit. Does she need the income immediately?
Lastly, does she have kids or a spouse or other beneficiaries that can cause you problems?
On the surface, the switch doesn't make sense - but a lot more info is needed.
Good Luck
First, this lady has 77% of her life savings in annuities. That is already a ridiculous amount for such a small asset pool. 23% liquid on $1,000,000 might be acceptable, but not on 135,000. No reputable company will/should touch that.
Second, it is always hard to justify a 4.5% hit, but possibly a bonus product might mitigate that. A 6 or 7% bonus would cover her charges, though that doesn't address the liquidity issue.
3rd, at her age, regardless of the income rider, no company is going to let her receive much more then a 5% payout on the income rider. She can already take 5% a year now, and do so for the next 20 years, even with a zero % return for 20 consecutive years.
You don't mention the current carrier, how long she has had the current contract, or what it is paying. How long before the end of surrender charges? What are the investment options of the current contract? Is it an indexed annuity? A variable?
What is her current income? Does she have a pension, social security or other income sources? This might help mitigate the hit. Does she need the income immediately?
Lastly, does she have kids or a spouse or other beneficiaries that can cause you problems?
On the surface, the switch doesn't make sense - but a lot more info is needed.
Good Luck
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