The Annuity Purchase Program enables you to help clients whose financial picture has changed since they bought an annuity. Estate planning, investment goals, or life changes can cause clients to rethink the strategy behind their annuity investments. The Annuity Purchase Program enables annuity owners to sell ‘some’ or all of their annuity values for cash.The Annuity Purchase Program is an ideal consideration when you have cash-poor clients stuck with annuities that they cannot liquidate. Suitable candidates for this program include the following:
- Owners of immediate annuities; or
- Owners of deferred annuities with excessive surrender charges; or
- Owners of deferred annuities that must be annuitized (aka “Two-Tiered Annuities); or
- Beneficiaries of annuities who are forced to take a 5-year death payout.
What’s even more exciting is that annuity owners don’t have to sell all of their annuity. Perhaps you have a client who purchased a Life with 20-Year Period Certain Immediate Annuity with $1,000,000. The annuity generates $6,554 per month in benefits. Your client has decided he’d like to start up his own business and will require $107,000. By selling $2,261 of his $6,554 annuity benefit for just 5-years, the Annuity Purchase Program can provide your client with the $107,000 needed. Then after 5 years, his benefit is restored to the full $6,554.
There are only two prerequisites for the Annuity Purchase Program. First, annuities must have a non-qualified tax status. And second, contracts that have been annuitized for LIFE Only (without Period Certain) cannot be sold. If you’re looking to sell a deferred annuity that required annuitization, there’s one other caveat. In order to fetch a fair price, the deferred annuity should be capable of being annuitized.
We’re pleased to bring you innovative programs like The Annuity Purchase Program. If you’d like to get a quote, just download the Quote Request Form and fax it back to us. If you’re requesting a quote for an immediate annuity, turnaround time is within hours. For deferred annuities, we will need a copy of the policy.
- Program Overview: Agent Sales Presentation – PPT
- Sample Transaction – PDF
- Quote Request Form – PDF
- Opportunities in the Secondary Market: BGA to Agent Present Values 10, 11, 12 – PDF
- Who needs this product? Profiles: Flexibility, Going Back to the Well, Never Surrender – PDF
- Related Articles: Broker World Nov ’05, Senior Market Advisor Jan ’06 – PDF