Understanding Annuity Training and American Equity Options
Explore the world of annuities with a focus on fixed and indexed accounts, safety, fair rates of return, interest compounding, and tax deferral. Learn about American Equity Choice Series offering liquidity, riders, surrender charges, and issue age eligibility for various options like Choice Series 6, 8, and 10. Discover minimum rates, penalty-free withdrawals, guaranteed interest, and more to make informed financial decisions.
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Presentation Transcript
Back to Basics Fixed Indexed Annuities Fixed Account Indexed accounts Safety and Fair Rate of Return Compounding Interest Tax Deferral
American Equity Choice Series Issue Ages 18-85 for Choice 6 and 8 18-80 for Choice 10 Liquidity 10% annually after yr. one Nursing Care/Terminal Illness Riders under age 75 Full death benefit at death of Owner or Annuitant Surrender Charge Period 6, 8 and 10 Years
Choice Series 6 CHOICE SERIES 6 Minimum Rates Penalty-Free Withdrawals Interest Rates Issue Age Minimum Guaranteed Interest: Currently 1.00%2 MGIR is set at issue and guaranteed for the life of the contract. Minimum Guaranteed Surrender Value: 90% of premiums paid, less withdrawal proceeds, at Minimum Guaranteed Interest, compounded annually. 18-85 Qual & Non-Qual 10% of Contract Value Annually, Starting Yr 2. Systematic W/D & RMD Immediately from Fixed Value.1 Riders: NCR-100 TIR-100 Lifetime Income Benefit Rider - Choice Series Version ICC14 R-LIBR 14 R-LIBR-W ICC16 R-LIBR- IDX Forms Commissions Not Available In: NY S&P 500 Annual Pt to Pt w/ PR S&P 500 Annual Pt to Pt w/ CAP S&P 500 Monthly Pt to Pt w/CAP Volatility Control Index4 Current Fixed Value Rate 1.80%5 Surrender Charge8: Issue Ages 18-85: 9.20, 8.00, 7.00, 5.50, 4.00, 2.50, 0% (6 yrs.) Cap N/A PR 40% PT N/A Spread3 N/A Min/Max Premium 4.50% N/A N/A N/A Min: $10,000 Max: 18-69 $1,500,000 70-74 $1,000,000 75-80 $750,000 81-85 $500,000 1.80%6 N/A N/A N/A N/A N/A 1.50% N/A
Choice Series 8 CHOICE SERIES 8 Minimum Rates Penalty-Free Withdrawals Interest Rates Issue Age Minimum Guaranteed Interest: Currently 1.00%2 MGIR is set at issue and guaranteed for the life of the contract. Minimum Guaranteed Surrender Value: 90% of premiums paid, less withdrawal proceeds, at Minimum Guaranteed Interest, compounded annually. 18-85 Qual & Non-Qual 10% of Contract Value Annually, Starting Yr 2. Systematic W/D & RMD Immediately from Fixed Value.1 Riders: NCR-100 TIR-100 Lifetime Income Benefit Rider - Choice Series Version ICC14 R-LIBR 14 R-LIBR-W ICC16 R-LIBR- IDX Forms Commissions Not Available In: NY S&P 500 Annual Pt to Pt w/ PR S&P 500 Annual Pt to Pt w/ CAP S&P 500 Monthly Pt to Pt w/CAP Volatility Control Index4 Current Fixed Value Rate 1.90%5 Surrender Charge8: Issue Ages 18-85: 9.20, 8.25, 7.25, 6.50, 5.50, 4.50, 3.50, 2.50, 0% (8 yrs.) Cap N/A PR 45% PT N/A Spread3 N/A Min/Max Premium 4.60% N/A N/A N/A Min: $10,000 Max: 18-69 $1,500,000 70-74 $1,000,000 75-80 $750,000 81-85 $500,000 1.90%6 N/A N/A N/A N/A N/A 1.25% N/A
Choice Series 10 CHOICE SERIES 10 Minimum Rates Penalty-Free Withdrawals Interest Rates Issue Age Minimum Guaranteed Interest: Currently 1.00%2 MGIR is set at issue and guaranteed for the life of the contract. Minimum Guaranteed Surrender Value: 90% of premiums paid, less withdrawal proceeds, at Minimum Guaranteed Interest, compounded annually. 18-80 Qual & Non-Qual 10% of Contract Value Annually, Starting Yr 2. Systematic W/D & RMD Immediately from Fixed Value.1 Riders: NCR-100 TIR-100 Lifetime Income Benefit Rider - Choice Series Version ICC14 R-LIBR 14 R-LIBR-W ICC16 R-LIBR- IDX Forms Commissions Not Available In: NY S&P 500 Annual Pt to Pt w/ PR S&P 500 Annual Pt to Pt w/ CAP S&P 500 Monthly Pt to Pt w/CAP Volatility Control Index4 Current Fixed Value Rate 2.00%5 Surrender Charge8: Issue Ages 18-80: 9.20, 8.25, 7.25, 6.50, 5.50, 4.50, 3.50, 2.50, 1.50, 0.50, 0% (10 yrs.) Cap PR PT Spread3 Min/Max Premium N/A 45% N/A N/A Min: $10,000 Max: 18-69 $1,500,000 70-74 $1,000,000 75-80 $750,000 4.75% N/A N/A N/A 2.00%6 N/A N/A N/A N/A N/A 1.00% N/A
100,000 Initial Premium Annual Point to Point S&P 500 45% Participation Rate 5.9% Average Return on 45% index Can go up 5% on participation if they take an MVA
Why Focus on the 45%? The majority of annuities in the market us a risk controlled index with a spread Harder to explain Return on majority of risk controlled indexes have performed very poorly After factoring in the spread, many years have resulted in a 0% gain for clients
Why Focus on the 45%? Examples of risk controlled indexes S & P 500 risk control 10% S & P 500 risk control 5% Barclays Armour II Volatility control Index Morgan Stanley Volnet Security Benefit BNP Paribus
Why Focus on the 45%? Trend with annuity companies is to pitch high participation with the volatility control indexes They have performed poorly compared to the S & P Average return over last 5 years for risk control indexes is 4%
Why Focus on the 45%? 4% average return with an average spread of 2% Most plans are on a 2 year point to point as well Client get little return and will forget why they did not get any interest after year 1
Optional Lifetime Income Provides a Guaranteed Lifetime Income Benefit Option 1 Guaranteed IAV Growth Option 2 Guaranteed IAV Growth + Wellbeing Benefit Option 3 Indexing Income Wellbeing benefit is an income doubled rider Indexing income is return x 3
Income Rider Options Option 1- 6.0% roll-up rate for 0.90% Annual Fee Option 2- 6.0% roll-up rate w/ Wellbeing Benefit for 1.00% Annual Fee Option 3- IAV Multiplier times the contract value rate-of-return for 0.90% Annual Fee
Annuity Leads Exclusive, Scrubbed and Verified 25-30 Minutes spent verifying each lead TV, Radio, Direct Mail, Internet $200.00 per Lead
Next Steps 1. Email Lisa@croweandassociates.com to get contracted 2. Call Christy Sparks with your next case for a full illustration Csparks@GordonMarketing.com 317-776-6770 xt.374
