|By: Jeff Affronti
June 27, 2016
YES! Immediate Annuities Can Have Liquidity!
Here Is How It Would Work For Male Age 67
I recently met with a sales
director from a major carrier. Like many carriers today, the
conversation was largely based on income riders since their core
fixed products are far from competitive. After exhausting all
arguments for an FIA rider over a SPIA for maximum immediate
lifetime income, the topic switched to liquidity in the
products. Now, aside from interest or systematic withdrawals we
rarely receive questions or requests for emergency withdrawals. A
common belief is that immediate annuities are not liquid at all and
once the contract is issued there is zero cash value. A great thing
about SPIAs is that many carriers offer them, adding a bunch of
different product features to the overall mix. Income planning has
driven these designs over decades. Now, there is a SPIA for nearly
all lifetime income needs.
Here is how the most liquid
SPIA in our
product grid would work.
All the below figures are GUARANTEED
From Day One!
Male age 67 | $1,000,000 | A+ Carrier | NO FEES
Income starting in 1 month = $4,750.64 ($57,008 Annually)
Surrender end of 1 year =
Death Benefit = $942,992 | Income Received $57,008
Surrender end of 2 years = $850,545
Death Benefit = $885,985 | Income Received $114,015
Surrender end of 3 years = $804,108
Death Benefit = $828,977 | Income Received $171,023
Surrender end of 4 years = $756,350
Death Benefit = $771,969 | Income Received $228,031
Surrender end of 5 years = $707,812
Death Benefit = $714,962 | Income Received $285,038
Surrender end of 6 years = $657,954
Death Benefit = $657,954 | Income Received $342,046
Surrender end of 10 Years = $429,923
Death Benefit = $429,923 | Income Received $570,077
Surrender end of 15 Years = $144,885
Death Benefit = $144,885 | Income Received $855,115
Surrender end of 17 Years = $30,869
Death Benefit = $30,869 | Income Received $969,131
No survivor benefit left after 17.54 years
Income after 20 years = $1,140,160
Income after 25 years = $1,425,200
Liquidity, just one of the many misunderstood features of the
What other insurance product can guarantee this liquidity and the
ability to withdrawal 5.7% annually for life without the fear of it
running out? Now here is an amazing fact, we can get that same 67
male a SPIA for $71,000 (7.1%) annually with the same death benefit
minus the liquidity feature. So, when comparing to a liquid SPIA or
even an FIA income rider, is the liquidity worth getting 2.00% less income
With the outlook of a quickly rising or hyper-inflating interest
rate environment not likely; risk averse individuals truly
appreciate the peace of mind the immediate annuity offers. Maximum
income and maximum guarantees!
Marketing, illustrating, building fixed annuities since 1995!
Thinking about a using SPIA's?
Get immediate annuity case design, quotes and contracting.
Call 800-373-9697 | www.spiaquote.com | www.fsdfinancial.com
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