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Common Questions

 
 
  1. If I die what happens to the money? Any money left in the accumulation value will be sent to your heir(s}.

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  3. What happens if you live so long you have no money left? The income is guaranteed to last your lifetime or you and your spouseís lifetime if you choose that option.

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  5. What happens if I want my money in a lump sum instead of taking income? You get your principal plus all the accumulated interest subject to any surrender fees and the cost of the income rider. Most products guarantee return of principal subject to surrender fees.

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  7. What happens if the insurance company has financial difficulties? In the past another company has swooped in to purchase these contracts, as is, since they are valuable assets. You also have the state guarantee funds that vary from state to state [call your state insurance commission for details]. There are hundreds of companies selling annuities; perhaps even over a thousand and few run into so much difficulty that they have the government step in, to save policyholders. As long as you donít buy from low rated companies you should experience no problems.

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  9. What age and stage of life is this most appropriate for? Anyone that has substantial savings, within 20 years of retirement and wants to eliminate the uncertainty of market ups and downs. There also is a fit for those in their late 30s who can move qualified [401K, IRA] money into a qualified annuity therefore eliminating market risk. Younger folks and those still heavily into accumulating savings are better served with an Equity Indexed Universal Life policy.

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  11. Why hasnít my financial planner told me about this product? Financial planners are usually tied into a security dealer. Most security dealers donít allow for the sale of this product. Wall Street has a great deal with folks being strong-armed into 401Ks where they are forced to purchase mutual funds from them. They have spent much of the last 30 years propagandizing us into thinking their way is the best way to produce retirement income, despite loads of evidence that it fails miserably.

  12. Why havenít insurance companies been aggressive in marketing this product? Some have, but many of the biggest companies make so much money from selling variable annuities that they fear cannibalizing their revenue because of the lower profits in this product. This product produces most of its profits during the income stage, while the variable annuity produces large profits from day one.

 

 

 

 

 

 

 
 
 
 
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