A practical new calculator is helping independent agents show their annuity and life insurance clients the tax benefits of two products over one.
The Prosperity Select Combo Calculator, created by Oxford Life Insurance Company, offers an instant comparison of the after-tax value of an annuity purchase versus the after-tax value of an annuity-life insurance combination purchase at a specific point in time.
By entering a few simple details based on the client’s financial status and goals, agents are able to plainly illustrate the most tax-efficient path for their clients to pass retirement savings to their children, grandchildren or charitable organizations.
“For agents who are so used to only selling annuities, here is an easy-to-use tool that can assist them in selling single premium life insurance,” said Mike Quaranta, Oxford Life’s Vice President of Sales. “The reason I like the calculator is you can adjust deposits to each product line while sitting with your client at the kitchen table, moving the numbers up and down, to show the client how the allocation changes can maximize what is available as a death benefit.”
Life insurance death benefits are tax free from federal income tax while the interest buildup in an annuity is taxable. If a client has plans to earmark savings for their heirs, church or other nonprofit, the Prosperity Select Combo Calculator helps them determine what portion of retirement can go toward life insurance to maximize the funds that will be handed down.
Listen to a tutorial about the calculator on YouTube. This tool is not promoting a joint or combo sale. The agent is selling two separate products in this scenario.
“We’re just combining the analysis of the death benefit into one easy calculation,” Quaranta said. “The benefit of using the Prosperity Select Combo Calculator is to get to the point where the client feels very comfortable seeing the advantage of having some money in a tax-free life insurance policy along with a traditional annuity.”
For more information visit www.oxfordlife.com.
About Oxford Life: Oxford Life Insurance Company was founded in the Grand Canyon state of Arizona in 1965 and remains committed to supporting the senior market through life insurance, annuity, and Medicare supplement products that meet their financial needs. Oxford Life is continually working to support its mission of enabling seniors to live with dignity in their retirement years through financial security.