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Annuity Spotlight for March 2012
 
What's New 

 

North American Company for Life & Health Announces Changes to Income Pay Rider  
    

Effective March 12, 2012, North American has added a third Bonus Credit option to the Income Pay, providing your clients with more choice when it comes to the Optional Guaranteed Lifetime Withdrawal Benefit Rider. Changes have also been made to Options One and Two, details are below:

 

 

Effective 3/12/2012

Prior to 3/12/2012

Option 1:

Bonus Credit for Life                      

Bonus Credit for Life

 

Bonus Credit: 5.50% for Life            

Bonus: 6.00% for Life

 

Cost: 0.40%                                  

Cost: 0.35%

 

 

 

Option 2:

Reset Opportunity Step-Up            

Reset Opportunity Step-Up            

 

Bonus Credit: 7.00% for 10 Years    

Bonus Credit: 8.00% for 10 Years    

 

Cost: 0.95%                                  

Cost: 0.95%                                  

By current company practice, on each contract anniversary through Age 80, if the Accumulation Value exceeds the GMWB Value,

the 10 Year Bonus Credit period will reset. 

 

Option 3:

Bonus Credit for 10 Years              

 

 

Bonus Credit: 6.75% for 10 Years

 

 

Cost: 0.95%

 

Option to extend the bonus credit for Contract Years 11-20. Cost may change after 10th year, not to exceed 1.50%. 

 

Click here to read the complete announcement. 

 

Avoid Returned Applications 

 

Have you... 


... Completed all required, product specific annuity training?


... Correctly completed all suitability questions?


... Pulled all of the required forms?

 

When in doubt,  call the Annuity Center!

 

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What's Hot

 

Best of Fixed Annuities Snapshot 

 

 

Click here to enlarge.  Updated as of 3/7/2012.


Green Starburst

   

 You can earn up to a 20% BONUS on your earned commissions!

 Exclusively through DAI.  Contact us for Details

  

 

 

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In the Market

 

Single in Retirement

 

At a time when American longevity continues to increase, long term retirement planning has become more challenging than ever. When financial security has been shaken by the weak economy, market volatility, depressed housing prices, and the rising cost of health care, Americans have been forced to adjust their expectations and retirement plans. Exacerbating the challenge of planning for a longer retirement is the fact that - by chance or by design - a large number of us will face retirement alone.  

 

Recent research shows it's becoming increasingly common to retire single. According to the 2011 US Census Bureau, 43% of seniors age 65 or older are single.  Of that forty-three percent , 4% have never married, 12% are divorced, and 27% are widowed.

 

What is driving the trend?

 

Midlife divorce. According to the Vanier Institute of the Family, 44% of marriage in the US will end in divorce before the couple's 30th anniversary.  (2011 Census Bureau)   After years of sacrifice spent raising children and juggling priorities, boomers increasingly seek freedom and self-exploration as a reward later in life.   

Outliving a spouse.  For women especially, the chances of outliving a spouse are high.  According to the 2011 US Census, 40% of women age 65+ are widowed, compared to 12% of men the same age. 

Choosing not to marry.  Recent population data shows less people are marrying now than in previous generations. Unmarried young adults ages 25 to 34 outnumbered their married counterparts by 2 percent, and that number is rising.

 

There are Six Key Things to Consider....

  

 

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 Visit our Blog to read the rest of the articlee.

  

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Sales Ideas

 

Genworth Financial's Bailout Provision:

Prepare your Client's with Certainty and Flexibility 

 

The SecureLiving Index 7 and Index 10 Plus from Genworth can complement your clients' retirement plans with real growth potential - and an innovative bailout provision!   

 

Growth Potential 

The SecureLiving Index 7 and Index 10 Plus offer real growth potential with a bailout cap rate above the minimums of most other contracts.  The average Fixed Indexed Annuity (FIA) minimum guarantee rate for the annual point-to-point option in the market today is 1.73%.  (AnnuitySpecs.com, 1/31/12.)  With SecureLiving Index 7 and Index 10 Plus,  the currently declared bailout rates are 3.10% and 2.10%, respectively.  (Rates as of 2/14, may vary by state.) 

 

Bailout ... What's That?    

The bailout provision is an extra measure of security.  Simply put, annuity contract holders with a bailout provision typically have an option to withdrawal a portion of their contract value, without a surrender charge, if the renewal cap rate for their contract value is lower than the bailout rate declared at contract issue.   With SecureLiving Index 7 and Index 10 Plus, your clients have an even better opportunity!  If the declared renewal cap rate of the annual cap strategy is below the bailout cap rate, the client can walk away with their entire contract value -- without surrender charge,  MVA adjustment, or reductions to the premium enhancement.  The bailout provision even applies to money not allocated to the annual cap strategy!

  

Bailout ... What does it mean to your clients? 

SecureLiving Index Annuities provide your clients with an innovative bailout provision:

  • The ability to prepare for the unpredictable, with flexibility for their money in a low interest rate and renewal cap environment.
  • The power to protect their options if faced with a lower than expected cap rate renewal.

The Genworth promise that if the renewal cap rate falls below the bailout cap rate, they have access to their full contract value, without surrender charge penalty or Market Value Adjustment.

 

 

Check out Genworth's Index Annuity One-Stop Site for Everything!

 

Genworth Index Annuity

 

 

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Let's Explore

 

6 Ways to Build Guaranteed Retirement Income

 

There are many ways to build a nest of guaranteed retirement income:   pensions, annuities, longevity insurance, reverse mortgages, Social Security, and more. Here is what every client should know about using these vehicles to maximize their own guaranteed, lifetime retirement income. 

 

1.  Create Guaranteed Income with Immediate or Fixed Annuities

The easiest way to get guaranteed income is to buy it! When your client purchases an Immediate Annuity, they use a lump sum of funds to purchase guaranteed income for a desired period of time, possibly as long as the client's lifetime. Single Premium Immediate Annuities (SPIAs) require that income start within 13 months of the deposit date. If your client is not ready for income that soon, a Fixed Indexed Annuity with a guaranteed minimum withdrawal benefit rider (GMWB) or guaranteed lifetime income rider (GLIR) can provide guaranteed income at some point in the future. As the account value of the Fixed Indexed Annuity grows, the "income base" grows with it, increasing the client's guaranteed withdrawal amount.  

 

2.  Guaranteed Income from Pension Plans

Pension plans also provide a source of guaranteed income, but the level of guarantee is not as comprehensive as with fixed annuities. Pension Plans can get themselves into financial straits where benefits being paid out to existing employees are reduced. There is a type of government insurance called the Pension Benefit Guarantee Corporation which protects pension benefits, but the amount that can be guaranteed is capped, meaning your client's full pension may not be insured.  

 

3.  Reverse Mortgages Provide Income for Life

Reverse mortgages can provide guaranteed income for life, but are not as popular a vehicle as some of the alternatives. Clients shy away from perceived high fees and the fear that the bank could take their home, but regulations changed greatly in 1993 and these fears are now unfounded.  If your client imagines the fees are too high, a bit of investigation should clear up those misgivings.  

 

4.  Social Security is a Source of Increasing Guaranteed Income

The majority of retirees receive the largest portion of their guaranteed retirement income from Social Security. Not only is the income guaranteed, but each year a cost of living adjustment ensures that purchasing power keeps pace with inflation.

  

5.  Longevity Insurance for Income Later in Life

Longevity insurance is a type of deferred immediate annuity which guarantees income starting at a designated age, often Age 85 or 90. Clients who purchase longevity insurance may feel more comfortable spending during their early retirement years, knowing that this guaranteed income is waiting for them when the time arrives.

  

6.  Retirement Income Notes - A New Way to Generate Guaranteed Income

Barclay's Retirement Income Notes are a type of bond designed to pay monthly payments for a set period of time, with each payment consisting of both interest and principal.  They issue these notes in terms that range from 15-30 years. With each note, your client purchases $100 of monthly guaranteed income for the specified term. These retirement income notes are sold as either "level-pay" notes, where your client's monthly income remains the same, or as "inflation-adjusted" notes, where your client's monthly income is adjusted with changes in the consumer price index.

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Special Announcement

 

Click here to check out the CASH BONUS offer on Fixed Annuity Sales

from American National Insurance Company! 

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Website BarcodeVisit the new home page regularly for updated news, events, important information and highlights!  In the new Carrier Section you will find all product guides, rates, state approvals and forms, etc. that you need for each carrier.   Visit the new Marketing & Sales and Education & Compliance sections for sales ideas, educational materials and more. 

 

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Contact our Annuity Center for additional information!

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Dworkin Associates Inc. 22 South Main Street Rochester, NH 03867