Annuities
Genworth
Immediate Annuity Rates – National and New York:
A benefit DECREASE (premium increase) was announced for a May 23, 2011 effective date. Any premium received after Friday, May 27 will be subject to this new rate scale. Paperwork received on or before Friday, May 27 for 1035 exchanges/transfers will lock in the existing rate scale. It is critical to note that applications with funds/transfer paperwork need to be here by FRIDAY the 27th to lock in current SPIA Rates.
Leave a Legacy, Using Secure Living Income Provider
Meet Phyllis and Susan: Phyllis, age 70, is a financially secure widow who makes annual gifts to her 10-year old granddaughter Susan’s college fund, but would also like to provide a guaranteed income to Susan for the rest of her life. Phyllis uses $100,000 in a savings account to buy a SecureLiving Income Provider SPIA with installment refund option, naming herself as owner/payee, she and Susan as joint annuitants, and Susan as beneficiary (using UTMA and naming Susan’s mom as custodian). The option she selected for her contract also provides that payments will increase based on 3% annual compounding
Results for Phyllis and Susan: Phyllis receives $2,417 as her first annual annuity payment, and this amount increases each year thereafter – the payment is $3,153 by year 10, $4,238 by year 20, and if Susan is alive at age 86, her annual payment will have increased to $22,186. If Susan lives to age 86, the annuity will have paid out more than $650,000. When Phyllis dies, payments continue to Susan who becomes the owner of the contract. If both Phyllis and Susan die before $100,000 has been paid out, the successor beneficiary named on the contract will receive the remaining payments. Over the years, Susan uses the annual payments to help with life’s unexpected expenses, contribute towards her children’s educations, pay for a wedding or two, and in later years to make special gifts to her own grandchildren.
Click here to view the SPIA Quote
Click here for the SPIA Quick Reference Guide
Changing the Conversation - How Do You Think About Genworth SPIAs?
Are you still dressing like you did in 1984? Still listening to the same music, and buying the same make and model of car? Still have a landline phone with a 30 foot cord so you could walk around the house and talk? Then why are you still trying to sell annuities like it was 1984? Change the conversation and increase your sales. First, in today’s interest rate environment you have to get back to needs-based and value-added selling. Change the conversation to a “Dollars and Cents” discussion, or, more accurately, a “Dollars and what makes Sense” discussion. Instead of quoting rates alone, let clients know what their money actually earns over the time period you are discussing. Over a 5 year period 3 percent will get a client over $16,000 compounded, and tax deferred. By telling the client the actual value you paint a much more vivid picture for them. Next, what value does the $16,000 have to the client? Again, instead of just quoting rates, get back to value-based selling. Ask the client, “What would you do with $16,000 over the next five years?” This will give you insight into what the client is thinking and how they would use the money. By reinforcing the value to the client and basing the sale on their needs, your sales will increase. With Single Premium Immediate Annuities, stress the value of the guaranteed income and “freeing” up money for emergencies. Instead of quoting just an income payout like $1,000 a month to them, try this : “Mr. and Mrs. Client, what if I could get you $1,000 a month in income you need, free up 25 to 30 percent of the money you were willing to use to produce the income for you, and create an emergency fund for you at the same time? What would you do with the income and extra money available to you?” Last, always use an illustration to show the client exactly what you are discussing with them. A picture paints a thousand words. Remember, do you want to keep trying to sell as if it was 1984 or do you want to bring more clarity to what you are explaining to clients and close more sales?
Lincoln Benefit
Refocused Annuity Strategy Affects Tactician Plus
Lincoln Benefit Life is focused on offering an annuity portfolio centered on consumers’ retirement needs. We also need to be good corporate stewards who deliver on our promises to our policyholders. Since the annuity marketplace is very important to us, today we are making another announcement as a part of our ongoing series of changes to our annuity strategy. Read more
Annuity Training Requirements for Producers in Iowa, Colorado and Wisconsin
Iowa, Colorado and Wisconsin adopted the revised NAIC Suitability Model Regulation earlier this year. Within the regulation there are two important training requirements that producers must adhere to prior to making a recommendation of an annuity product to customers. Read more. For the Product Directory, click here. For the Annuity Product Training Certification, click here
Lincoln Financial
Updated Lincoln Fixed Annuity Rates
Fixed annuity rate changes became effective 5/23/2011. Fixed indexed annuity rate changes are effective for applications received on or after 5/23/2011. Click here for details.
An Added Bonus to Lincoln Fixed Indexed Annuities
We’re pleased to be making changes to one of our fixed indexed annuity products so that we can help you better meet your clients’ needs to prepare for retirement. Read more
LTC
John Hancock
In-Force Rate Action On Certain Policies in AZ, MI, MN, PA, UT and WY — Beginning Soon
We will begin policyholder notifications of in-force rate actions on certain John Hancock and Fortis LTC insurance individual policies originally issued in Arizona, Michigan, Minnesota, Pennsylvania, Utah and Wyoming in late June 2011. Read this article for state-specific details, implementation timelines and tools to help you through this process.
Overview of the Rate Action, LTC-1093
Producer Training Guide, LTC-1128
Information Guide, LTC-1105
Download the Latest National Training and Partnership Resource Guide
The guide has been updated to reflect new training requirements in Utah. It also provides you with all you need to know about state training requirements, deadlines, and resources on how to submit proof of certification. Form: LTC-3251
Utah: Reminder of Training Requirements
As a reminder, training was required by May 10, 2011. Read this article for state-specific requirements, deadlines and how to obtain online training.
Lincoln Financial
Male 65 NS could have $439,605 for LTC Funding!
A Lincoln MoneyGuard Reserve Plus single premium universal life insurance policy can help give your clients more for their long-term care dollars. Read more
Reminder: Lincoln MoneyGuard® Reserve Plus Transition Period Ending
Lincoln MoneyGuard® Reserve Plus was introduced on March 28, 2011, and we are nearing the end of the 60-day transition period to offer MoneyGuard® Reserve in approved states. Tickets for MoneyGuard® Reserve must be signed and dated on or before May 27, 2011, and received in good order in the home office by Friday, June 10, 2011. MoneyGuard® Reserve will continue to be available in the states that have not yet approved MoneyGuard® Reserve Plus (CA, CO, HI, IL, NY, PA, TN, VT, VI). Read more
IMPORTANT: Update Regarding Your Lincoln MoneyGuard Submissions
Lincoln MoneyGuard® Reserve Plus was introduced on March 28, 2011. We are nearing the end of the 60-day transition period to offer Lincoln MoneyGuard® Reserve in approved states. Read more
National Underwriter
Researchers: LTC Insurance Keeps Some in Homes
Private long term care insurance helps insureds with moderate disabilities stay in their homes longer and does not appear to crowd out informal caregiving…Read more
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