With trillions of dollars of non-qualified deferred annuities on the books and an aging population, an opportunity exists for you to provide a solution to those long time annuity holders who face the prospect of a maturing annuity contract.
Let’s say Mrs. Smith is 90 years old, has a deferred annuity with $190,000 of value that is out of surrender, does not need the money for income, and is faced with the decision of how to take the maturing annuity.
Typically, her choices would be …
- take a lump sum distribution (and pay the taxes on the gain),
- annuitize the contract (and pay taxes on the gain), or
- move the proceeds to a single premium immediate annuity (and pay taxes on the gain).
There is another solution that does not require her to take income from the annuity – Legacy Care!
Legacy Care is a single premium deferred annuity with no maturity that can accommodate exchanges from non-qualified deferred annuities up to the age of 99.
What’s in it for Mrs. Smith?
- She is not forced to liquidate her existing annuity and pay more taxes.
- Her Legacy Care annuity will continue to grow at a modest crediting rate.
- In the event that she requires LTC benefits, proceeds can be converted into an income stream to fund her extended healthcare expenses..
What’s in it for the writing agent?
- A solution that does not create a taxable event for Mrs. Smith is presented that does not require any underwriting.
- The opportunity to continue to help Mrs. Smith’s as her needs change.
- A modest commission is generated.
Fridays with Fisher 