The Annuity that Keeps on Giving this Holiday Season
A quick policy review might be just the gift that your clients (and you!) are looking for this holiday season. Take just a couple minutes to read how a brief inforce policy review turned into two applications for over $250,000 of premium for our AgencyONE 100 Advisor.
Case Study – Mr. & Mrs. Snow❄️
Mr. and Mrs. Snow both had indexed annuity contracts crediting a fixed rate of 1% for the upcoming policy year with an S&P 500 cap rate of 1%. In other words, policies that are not competitive in today’s marketplace. With fixed annuity rates more competitive than they have been in many years, there is no reason for your clients to be missing market upside with a policy that credits only guaranteed minimum rates. The AgencyONE 100 Advisor presented two alternative options for his clients to consider:
- Option one– a similar indexed annuity offering an S&P 500 point-to-point account with a cap rate 1,200% higher than that of the current policy
- Option two- a 5-year multiyear guaranteed annuity with a 5.4% guaranteed rate – 540% higher than the fixed account rate in the current policy
Mr. and Mrs. Snow ultimately chose option two and submitted applications for policies that will significantly improve their position heading into the new year. Because they are still in the accumulation phase of their retirement journey, a new 5-year surrender period was an acceptable tradeoff for moving to a more competitive policy; the decision to 1035 exchange their current policies was an easy decision to make and the ultimate gift to themselves!
Bottom Line
If you have clients with inforce annuity contracts, (old Genworth policies or maybe those with a carrier who has pulled out of the market in past years) take this opportunity to contact them now. If you do not, you may be leaving money on the table, and more importantly, leaving your clients in contracts that are not competitive. Give your clients – and yourself – a gift this holiday with this easy annuity replacement opportunity.
Please contact AgencyONE’s Annuity Department at 301.803.7500 for more information or to discuss a case.