Indexed annuities monday night training

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Indexed annuities monday night training

  1. 1. The Power ofIndexed Annuities Agent use only- not for use with the public
  2. 2. What is an Annuity?Stream of payments in or out…an annuity contract is created when an individual gives a life insurance company money which may grow on a tax-deferred basis and then can be distributed back to the owner in several ways. Agent use only- not for use with the public
  3. 3. Two basic phases of annuitiesI. Deferred: customer deposits and accumulates money into an account (the deferral phase)II. Customers receive payments for some period of time (the annuity or income phase). Immediate or annuitization Agent use only- not for use with the public
  4. 4. Types of Annuities Deferred - Immediate Fixed – Fixed Indexed - Variable Qualified - Non-Qualified (IRA) Tax Sheltered Annuities, TSA & 403bReferred to asFPDA (flexible premium deferred annuity)SPDA (Single Premium Deferred AnnuitySPIA (Single Premium Immediate Annuity) Agent use only- not for use with the public
  5. 5. Advantages and Disadvantages59 ½ restrictions. 10% penalty Long TermTax deferralDon’t have to pay tax each year unless you takethe money out Agent use only- not for use with the public
  6. 6. TIC-TAC-TOE2%-4%? Upside Potential Fixed Indexed VariableProducts Products ProductsSafety of Risk ofPrincipal Principal Agent use only- not for use with the public
  7. 7. Bank• $200,000• @ 4% currently about 1%= $243,250 In 5 years• $9,730/yr. which is a• $810/mo. monthly pension Maybe less hardly more
  8. 8. Insurance Contract$200,000 Deposit with a strong, highly rated, insurance company 8% Guaranteed upfront bonus$16,000 8% Guaranteed interest every year$317,250 Guaranteed growth in 5 years 6% Guaranteed annual pension for as long ___ as she lives$19,100 Guaranteed a year or$1,518 Guaranteed monthly pension Could be more, Guaranteed not to be less
  9. 9. Which would you choose?• Stock Market ????• Bank $810 per month• Insurance Co. $1,518 per month The Insurance Co. minimum is guaranteed and that is 94% More than the Bank Bank is not Guaranteed as to amount (@4%)
  10. 10. Commission Example: Mary’s lump sum VP- Vice Pres.• Personal Sale $16,000• Team Sale – Teammates he/she makes $12,000 – You make $4,000

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