I believe many annuity agents who enjoy working with SPIAs are missing out on a very large market dealing with minors simply because; they lack the training and carrier support. Many of the very meaningful SPIA cases I have written have been for minors. Excluding litigation annuity contracts (aka structured settlements) market, there is plenty of other commercial SPIA opportunity. First, you need to get the old annuity saw phrase; “guaranteed lifetime income”…
Category: 2018
SPIA Commutations and Income Taxation Considerations
SPIA post issue management concerns are not often considered. To most agents and individuals these contracts tend to be “fire and forget”. Post issue management concerns are typically associated with SPIAs issued via the new business application process and not associated with SPIAs that are created via “supplemental” annuity contracts when one annuitizes an existing deferred annuity contract or life insurance policy. Supplemental annuity contracts are altogether different animals when…
Deferred Annuities, Breaking the Serial – SPIA Rescue
As annuity interest rates start to heat up coming out of their ice age thaw, it’s time to revisit what serial annuity contracts are and how to break serial contracts once they occur. Should general interest rates continue to rise and new declared rate deferred annuity business begins to pick up, there will be a fair amount of new 1035 exchange activity from older declared rate contracts with low current…
