|
If
you simply have questions about annuities, would
like some sales ideas or need a client seminar
presentation, we are here to provide you with
the tools you need to make the sale. Here are
some Sales Tools that may help you.
Feel
free to call one of our Experienced Marketing
Representatives if you have any questions or
need any more information.
FAQ's
QUESTION:
What method to calculate
index gains is better, Annual Reset Point-to-Point
or Annual Reset Averaging?
ANSWER:
If we could predict the market then we could
tell you which method is better. However, we
cannot predict the market so an understanding
of how each method works will help you decide
which might be best for the client.
ANNUAL
RESET AVERAGING METHOD: This method
compares the difference between where the index
is on the first day of the contract year and
the index's average during the year. Some contracts
us a monthly, weekly, or daily average.
BENEFIT:
Using this type of technique helps minimize
the extreme peaks and valleys that can occur
during any given year. It also helps reduce
volatility to provide more consistency over
the life of the annuity.
DISADVANTAGE:
In a steady increasing market, averaging would
decrease the amount of index-linked interest
that could be earned.
ANNUAL
RESET POINT-TO-POINT METHOD: This
calculation method uses two points in the index
during you reset period. The difference between
where the index is on the first and last days
of the contract year, will determine the index
growth for that year.
BENEFIT:
In a steady increasing market the point-to-point
method would generate a higher index return
than averaging would.
DISADVANTAGE:
In a volatile market the point-to-point would
not capture gains if the market had a rise throughout
the contract year, then fell at the end of the
year lower than or equal to the starting point.
SALES IDEA: Look for products that will allow
you to divide the clients premium between the
different calculation methods. This way you
can take advantage of the market during increases
and volatility.
QUESTION:
What does Annual Reset
mean and what are the benefits?
ANSWER:
An Annual Reset provision allows index credit
to be added to the index account on each anniversary.
Once added, the locked in index credit will
participate in any future growth, giving you
the advantage of compounding, and can never
be taken away regardless of future Index performance.
This provision also resets your starting index
point each year on your anniversary. This is
beneficial to you when the index experiences
a severe downturn during the year. You then
can take advantage of gains from that point
forward. Without the Annual Reset, you would
have to wait for the index to climb up to its
original level before any gains could be realized.
QUESTION:
What does Participation Rate mean?
ANSWER:
The Participation Rate is the percentage that
is multiplied by the gain at the end of the
Index Period to determine the Index credit to
your contract. EXAMPLE: If there were a 15%
gain in the index and the contract had an 80%
Participation Rate, then 80% of 15% would equal
a 12% gain credited to the contract.
QUESTION:
How does the minimum guarantee account work
on index annuities?
ANSWER:
The minimum guarantee is the least amount of
money that the client can walk away with at
the end of the contract term. You have to look
at the minimum guarantee account value as growing
separate from the index account value. The index
account grows on 100% of the premium. The minimum
guarantee account grows usually on a percentage
of the premium, for example 3% on 75% of the
premium. With most contracts the money available
at the end of the contract term would be the
index account value or the minimum guarantee
account value whichever is greater. This would
also apply if the contract is surrendered or
at death. Keep in mind surrender charges may
apply.
GENERAL
QUESTIONS
QUESTION:
What is a Market Value Adjustment?
ANSWER:
Commonly
referred to as an MVA, this is an adjustment
normally only applied to a contract at surrender
or if the total amount withdrawn exceeds the
free withdrawal amount. The amount of the MVA
is determined by a mathematical formula using
the difference between the base interest rate
of the contract at issue and the base interest
rate of a similar contract being issued at the
time of withdrawal. The MVA can have a positive
or negative impact on the value of the annuity
contract. The benefit of an MVA contract is
that in most cases it allows the insurance company
to offer a higher interest rate than a non-MVA
contract.
QUESTION:
How much is the State Guarantee Fund?
ANSWER:
Each state has there own laws in regards to
this. To find out more information about your
state, go to www.NOLHGA.com, then click on your
state.
QUESTION:
What is a Split Annuity?
ANSWER:
The split annuity is a concept that uses a Single
Premium Immediate Annuity and a Deferred Annuity
to give the client both income and growth. Typically
the portion of the premium put into the Deferred
Annuity is determined so that it accumulates
back to the same amount at the end of the contract
term as the original total premium. The balance
is used to fund a Single Premium Immediate Annuity,
where your client is guaranteed to receive a
specified income for the period selected. This
concept also offers tax advantages on non-qualified
funds. The client is only taxed on a portion
of each income payment because part of the payment
is considered return of principal. Compare this
to the tax treatment on a deferred annuity where
the client is withdrawing only gains to use
for income. The difference really adds up.
Client
Seminars
Click
here for information about our client seminar
program
Enhance
Your Business
Safe
Harbor Financial understands how hard it can
be to keep up with the competition. We want
to help by giving you some sales ideas that
you can use to build strong, long- lasting relationships
with your clients. Using these ideas could help
you become more efficient in your business practice.
This will allow you to deliver better service
to your clients.
Become
a CSA or become a member of the National Ethics
Bureau so that your clients can be confident
that they are working with a professional advisor.
Here are some suggestions to help you get that
extra edge on the competition.
Become
a Certified Senior Advisor
The Society of Certified Senior Advisors (CSA)
is America's oldest and largest educational
organization specializing in training persons
who work in the senior (50+) market to deliver
their products and services more effectively.
Students who successfully complete their training
are granted the designation "Certified
Senior Advisor" (CSA).
Safe
Harbor Financial highly recommends this program.
Be sure to mention us when you call and you
will receive a $100.00 discount.
For
more information click
here and visit there website at www.society-csa.com
BECOME
A MEMBER OF THE NATIONAL ETHICS BUREAU
Now more than ever, there is an increased need
for the public to know whom they can trust in
the financial services industry. Because of
having met high standards in the areas of ethics,
licensing and education, NEB Approved Members
are recognized as business professionals that
can be trusted.
To
learn how you can become a member of the NEB
visit: www.ethicscheck.com.
Get
your own website
Safe Harbor Financial recommends Financial Visions
as your website provider. Financial Visions
is absolutely the easiest and most cost effective
way for insurance and financial advisors to
build, edit, and manage a professional website.
For
more information click
here and visit their website at www.fvisions.com
A
simple way to TRIPLE
YOUR INDEXED ANNUITY SALES
CD's
COMPARED TO FIXED ANNUITIES
Compare
RESERVE
REQUIREMENTS
Compare
the Risks, Rewards and Guarantees of Real Estate,
Bonds, Stocks, Options, Commodities, Mutual
Funds, Limited Partnerships, Direct Private
Placements, CD's, Variable Annuities and Fixed
Annuities.
View this INVESTMENT
COMPARISON
|
