“Mailbox Money”
Presented by David Corwin Living too long is a risk that many seniors are faced with today. Studies show that a 65 year-old man has a 34% chance of living to age 90 and a 17% chance of making it to 95. A 65 year-old woman has a 44% chance of living to age 90 and a 23% chance of reaching 95. These longer life spans present wonderful blessings, but difficult challenges with the real risk of running out of their savings they have worked a lifetime to create. Annuities can provide a lifelong check directly to their “mailbox” to help mitigate the risk of running out of money. I can help you position one of the products below to best fit your client’s needs:- Single premium immediate annuity (SPIA) – this annuity offers an income for life or a certain period of time to be paid out. Often a good fit to cover the time between retirement and social security payments (and other scenarios), but the client does give up “control” of the lump sum asset in return for a potentially larger payout than other types of annuities.
- Fixed annuity – this annuity still gives the client 100% control over the asset, which means they can withdraw money as needed, but how long it lasts is dependent upon withdrawals and interest gained on the contract. Generally speaking, 10% penalty free amounts are withdrawn so additional fees and charges aren’t incurred. The drawback would be that income will not last for life, unless annuitized, which of course forces the annuitant to give up control of the asset.
- Income rider – this is a rider that is available on most indexed annuities. These seem to be the most popular because many contracts guarantee a future result. The client still has complete control of the asset while also knowing they can have “mailbox money” for life.
State Life – Care Solutions Interest Rate Notice
In response to the current interest rate environment, new business interest rates for Indexed Annuity Care will be decreasing effective Monday, February 15, 2016.The Indexed Annuity Care rates will be as follows:
Point-to-point Cap = 3.25%
Point-to-point Par = 20%
Monthly average Cap = 3.50%
Monthly average Par = 27%
Fixed account = 1.10%
Indexed Annuity Care continues to offer Most Beneficial Rate:
Indexed Annuity Care offers your clients the opportunity to receive the best declared interest (or cap, or par) rate available between the date their application is received in the Home Office, and the effective date of the contract, if fully funded within 60 days of application. This feature is intended as an easy-to-do-business provision to provide you and your clients the peace of mind to know that they can receive the best declared rates during the application process.
Note: All products may not be available in all states or may vary by state. Policies are issued by The State Life Insurance Company, Indianapolis, Indiana.
Lincoln Financial Group – Follow-Up from Competitive Services Group…
This is a follow-up from the February ONE meeting where Lincoln Financial discussed taxes, specifically how life and long-term care insurance can lessen the burden of taxes. A lot of new resources were discussed that are available to assist you in having these conversations with your clients. To view more details, click here.The Eight Elements of Extended Care Riders – Element…
Presented by Brian Leising Finding the right formula for each client Not all extended care riders on life insurance policies are created equally. Do you know the differences? Different combinations will appeal to different clients more than others. Here are eight of the major distinguishing features among insurance companies offering extended care riders. All include some combination of the eight elements. This allows you to find the right formula for each client.Premium Payments | Benefit Qualification | Benefit Amount |
Pf Payment Frequency | Pa Payment Amount | |
Lg Lapse Guarantee | Tc Tax Code | Pm Payment Method |
Wp Waiver of Premium | Ep Elimination Period | If Inflation |