Unique Annuity Products & Design

Investing With a Safety Net – QLAC’s
The recent Secure 2.0 legislation increased the amount you can contribute to a Qualified Longevity Annuity Contract. Last year the contribution limit was the lesser of 25% or $145,000 of qualified assets. Now you can contribute up to $200,000 without concern for the percentage of assets. 
Forecasting someone’s retirement income is not an exact science.  There are many variables involved and even if you use Monte Carlo simulation, things might not work out as “projected”. Why not invest with a safety net by transferring some assets to a QLAC? 
When you tell clients they have an 85% chance their money lasts to age 90, some clients are concerned about the 15% unsuccessful odds along with the potential to live past age 90.  Why not take some money and create a guaranteed lifetime income that kicks in at age 85?  This can add confidence and increase the odds for a successful outcome. Learn more via our Integrated Insights™ below.
Integrated Insights™ – QLACs

4-in-1 Retirement Benefits
Retirees have many concerns weighing on them.  The most common concerns are running out of money, needing chronic care, leaving assets for loved ones, and a reduction in social security income. One unique annuity product addresses all four of these risks.  The benefit base can be paid in the following 4 situations:

  1. The inability to perform 2 of the 6 ADL’s. This product only requires your client to be able to perform all 6 of the ADL’s at purchase.  Perhaps you have clients not able to secure LTC coverage in the past.  They might be a great candidate for this product.
  2. A change in social security benefits.  The current social security trust fund is expected to be depleted by 2034.  At that time, it is projected to be able to pay only 77% of the expected liabilities.  If a reduction in social security happens you can trigger the policy to payout additional income for the shortfall.
  3. Longevity risk. Once you have held this contract for the minimum required years you can trigger the benefit base to be paid as a lifetime income with a cash refund option.  The benefit base is 200% of your account balance.
  4. Enhanced Death Benefit.  If you die without using your annuity for income or care, the policy will pay an enhanced death benefit over the next 5 years to your heirs.

4-1 Retirement Benefits Rider

Annuity Arbitrage & Split Annuities

The best clients for income annuity products are conservative with expected longevity, and those with less assets that need to maximize their income from what they have.  Attached are two designs for a 65-year-old female from our Anatomy of an Annuity presentation.

Annuity Arbitrage

Anatomy of an Annuity Webinar REPLAY (Passcode: Jv311b#m)

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