4 Year Indexed Annuity
Annuity Agent Journal News - Archive
A monthly guide for insurance agents reviewing fixed annuity product quality and performance.
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September 2006 |
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The SAFETY INDEX 4
flexible premium, fixed indexed annuity from Fidelity and
Guaranty Life is highly competitive and offers terrific guarantees, such as
a minimum guaranteed surrender value that is 100% of your client’s premiums
compounding at 3% (less a surrender charge). On the fixed option, the
initial interest rate is GUARANTEED for four years, and is guaranteed to be
equal to or greater than 3%for the life of the policy! Additionally, your
client will have the security of the annual reset feature, where any account
gains are locked in at the end of each year – their account will never
decrease in value! Your client will also have riders to address unexpected
contingencies such as unemployment, diagnosis of a terminal illness or
nursing home confinement. This product offers five interest-crediting
options to assist your clients in meeting their financial goals. Safety Index 4 September Rates 4 Index Crediting Options plus a fixed option: 1 Year, S&P 500®Monthly Point-to-Point with a Cap of 3.15% over $100,000 and 2.90% under $100K1 Year, S&P 500®Annual Point-to-Point with a Cap of 10.00% over $100,000 and 9.00% under $100K 1 Year, S&P 500®Monthly Average with a Cap of 12.50% over $100,000 and 11.00% under $100K 1 Year, S&P 500®Monthly Average with a Spread of 1.25% over $100,000 and 1.75% under $100K 1 Year Fixed Interest of 3.70% over $100,000 and 3.40% under $100K THE LIBOR FIXED DEFERRED ANNUITY! Now in its third month the history reads like this: July 5.05%, August
5.10% and currently for September 5.03%. While the 10 year treasury has
fallen from 5.23% to 4.76% the LIBOR has help sticky to a 5.00% monthly
rate. 5.33% 1 month LIBOR minus 0.30%=5.03%. THIS IS A MONTH-TO-MONTH FLOATING RATE. The spread (0.30%) subtracted from LIBOR guaranteed for first policy year. The rate for the following month is set by the 1 Month LIBOR 2 days prior to the end of a month. LIBOR means the London Inter-Bank Offered Rate denominated in U.S. dollars, as set by the British Bankers Association. LIBOR is the most widely used benchmark or reference rate for short term interest rates world-wide. Product is offer by Beneficial Life, a 100 year old company that appreciates your business. Just as we do at FSD Financial. Commission is 1.00% (0-100) See enclosed spreadsheet for other details. Not available in all states. 2.00% Surrender during the year. Guaranteed Increasing Step-UpRate Annuity It is simple and works like this: · Year 1 is 3.90% Guaranteed · Year 2 is 4.40% Guaranteed · Year 3 is 4.65% Guaranteed · Year 4 is 5.15% Guaranteed · Year 5 is 6.15% Guaranteed ALL 5 YEARS ARE GUARANTEED!! In year 5 the client is earning 6.15%. Average is 4.85% over the 5 years! If you like a deferred annuity you’ll love a MEC Beneficial Life (Modified Endowment Contract) Assume your client fits the following scenario: - Male Age 70 Client has $100,000 of “legacy assets” that will likely transfer to heirs. - Client does not wish to part with the asset just in case he or his needs funds in the future. - Chronic illness is a primary concern - Client wishes to minimize current taxes on these funds, while increasing the net return beyond that available through fixed accounts or investments. - Client wants an absolute assurance that he will not have to come up with additional out-of-pocket premiums to keep a life insurance policy in-force. - Client desires a guaranteed cash value. Choices:
The following illustrations assume your client paid $100,000 into the respective products: Illustration #1: Century Whole Life, 65 Male, Select, Face: $25,000, Annual Premium, Interest Rate: 4.00% Illustration #2: Centennial Universal Life, 65, Male, Select, Face: $250,000, Level, Annual Premium, Interest Rate: 5.20% Illustration #2: Advantage 11 Annuity, 65, Male, Non-Smoker, Annual Premium, Interest Rate: 3.95% Selected Values Continued
The Century WL product gives your client:
A TRULY INTENSE FIXED ANNUITY TRAINING SEMINAR Over the past 15 years I have worked with agents across the country as a wholesaler for fixed annuities. I have had a policy in which I have trained agents over the phone on fixed annuity basics. Many times I have been asked to formalize these training sessions nationally. I am now making this training available to all agents. I believe in fixed annuities in the strongest possible way. I believe that agents who know the business as I do, will see the great potential out there. Most importantly is the fact that we can help clients safely meet their needs and goals while earning a very good living. Unfortunately, most agents don’t have a true understanding of the products they may be selling or the ones their clients are considering. Many agents are invited to "free seminars". The purpose of these free seminars is to get the agent to sign up with the insurer or wholesaler who sponsors the meeting. I have heard from many agents that these are recruiting meetings and specific to a company or product. Not meant to train! This seminar is different. That’s why we charge $495.00. We will not require you to appoint with any companies. We will not promote specific products or carriers. We will train you to be a fixed annuity expert. You will learn the ins and outs of this market, where and how annuities fit and comparisons to alternative investments. I promise this will be the most educational seminar available. In addition, this course has been approved by the California Department of Insurance for 4 hours of CE credit. By the way – to recover the cost of this seminar you only need to sell an additional $10,000 in annuities (at 5% commission). If you can’t increase your sales by more than that, then you slept through the seminar. |
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