8% Guaranteed Return FIA with a 20-year roll up and 10% bonus

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            Over time, I’ve made advisors aware of a few of my favorite FIAs with guaranteed income benefit riders (GIBs).  Click on any of the following to read learn more.

            The 7% GIB with the "fairest” payment schedule
            The “no surrender charge” FIA
            The powerful “increasing income” GIB rider

            Terms of the 8% GIB product

            -8% guaranteed return (accumulation value)
            -20-year roll up on the 8% return
            -10% bonus that immediately vests for income purposes

            I’m not aware of any company offering a declared rate of 8% with a guaranteed roll up of 20 years.  In addition, the fact that the bonus for income purposes vest immediately (vs. a tiered schedule over a 10-year period) is very strong.

            The downside to the product is that it has a payment band as follows:

            -Ages 50-60 = 4% income benefit; -Ages 60-70 = 5% income benefit; -Ages 70-80 = 6% income benefit; -Ages 80-90 = 7% income benefit

            When you look at the terms of this annuity real quick, you’d probably think that it’s the “best” FIA with a GIB rider in the industry for “all” clients.  That is not the case.  Depending on the fact pattern of a client, this could be the “best” product; or it could be the 10% simple interest return product that has the “fairest” payment schedule, or it could be the “increasing income” product. 

            The key is knowing “all” of the viable products so you can bring those to the table to fit the needs of your clients. The key is working with an IMO that knows “all” of the viable products and tells you about them (vs. not telling you so the IMO can make larger overrides on inferior products or ones that do not suit the client).

Roccy DeFrancesco, J.D., CWPP™, CAPP™, or CMP™
Founder, The Wealth Preservation Institute
Co-Founder, The Asset Protection Society
269-216-9978
313-887-0532 (fax)
http://www.thewpi.org

Author of The Doctor's Wealth Preservation Guide; The Home Equity Management Guidebook: How to Achieve Maximum Wealth with Maximum Security; The Home Equity Acceleration Plan; and Retiring Without Risk; Bad Advisors: How to Identify Them; How to Avoid Them.