Annuities

“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  Generally speaking, 10% penalty free amounts are withdrawn so additional fees and charges aren’t incurred.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.
Please call David Corwin at 800-397-9999 and let me help you fit your client’s needs.
Annuity

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.
Life Insurance

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
Element 2 – No-lapse guarantee One of the primary reasons clients give for purchasing life insurance-based extended care plans over traditional extended care policies is the fact their premium will never change. As a health insurance product, traditional LTC polices are subject to rate increases. Good luck keeping your clients happy when they receive a rate increase notice of 50% or more! With a no-lapse guarantee universal life or a whole life based contract, your clients never have to worry about future rate increases. Everything is in their control. If they pay their premiums on time, every time, take no loans or withdrawals, their premiums are guaranteed to remain level. Some companies also offer life insurance without guarantees for their extended care riders. These need to be monitored regularly to ensure they maintain enough cash value to remain in force. Look for Element 3 – Waiver of Premium in March.