Are All Income Boosters Created Equal?
With healthcare costs topping the list of retirement concerns,* now’s the time to offer clients an income booster that may do more to protect their nest egg. If you aren’t already offering the FlexMark Select® fixed indexed annuity MyFit Income Rider® With Booster** from Ameritas Life Insurance Corp., we challenge you to take a fresh look at this outstanding rider. Unlike many income riders that offer booster benefits for declining health, the MyFit Income Rider® With Booster:
- Offers payouts that truly double, even for joint annuitants.†
- Doesn’t require confinement to qualify, allowing clients to receive in-home care.
- Provides benefits after Year 2 (Year 1 by current company practice) upon qualification.
- Continues double payouts until the Accumulation Value reaches zero.†
- Is backed by an “A” rated carrier.††
Plus, it’s available on a fixed index annuity that offers powerful accumulation potential as well as one-time 20% liquidity potential.§
Run an illustration today, and see what the MyFit Income Rider® With Booster can do for your clients.
In approved states, FlexMark Select® Index Annuities (Form 2705) and riders are issued by Ameritas Life Insurance Corp. (Ameritas) located at 5900 O Street, Lincoln, NE 68510. Products are designed in conjunction with Ameritas and marketed exclusively by Legacy Marketing Group®. Ameritas and Legacy Marketing Group® are separate, independent entities. FlexMark Select® Index Annuities are single premium deferred annuities that offer a fixed interest option and index interest options. The index options are not securities. Keep in mind, your clients are not participating in the market or investing in any stock or bond. Policies, index strategies, and riders may vary and may not be available in all states. Optional features and riders may have limitations, restrictions, and additional charges. Product guarantees are based on the claims-paying ability of Ameritas Life Insurance Corp. Refer to brochures for additional details. Information gathered from external sources is believed to be reliable; however, we make no representations as to its completeness or accuracy. This information should not be construed as investment, legal, or tax advice. Unless otherwise specified, any individual or entity referenced herein is not an affiliate of Ameritas or any of its affiliates. FlexMark Select® and MyFit Income Rider® are registered service marks of Legacy Marketing Group®.
Withdrawals may be subject to income tax. If withdrawals are made before age 59½, they also may be subject to an IRS penalty tax. Ameritas, Legacy Marketing Group®, and their authorized representatives do not give legal or tax advice. It is recommended that tax advisers be consulted.
| * | “Kiplinger Poll Affirms Healthcare Costs Top List of Retirement Concerns,” ClearBalance (February 26, 2019) http://clearbalance.org/kiplinger-poll-affirms-healthcare-costs-top-list-of-retirement-concerns/. |
| ** | Available for an annual charge of 1.05% (not available in all states). To qualify for and activate booster benefits, clients must be unable to perform two of six activities of daily living. Requalification must be provided each policy year. See sales guide and rider brochure for more information. Income rider not available with certain tax-qualified plan types. |
| † | The booster benefit option can only be exercised once for each covered person and will continue until the covered person no longer qualifies or the policy’s accumulation value is reduced to zero. Written notice of continued impairment must be received annually for benefits to continue. |
| †† | A (Excellent) for insurer financial strength. This is the third highest of A.M. Best’s 13 ratings. Rating as of 3/23/19. Ameritas Mutual Holding Company’s ratings include Ameritas Life Insurance Corp. and Ameritas Life Insurance Corp. of New York. |
| § | Includes 10% annual penalty-free withdrawal and additional one-time 10% emergency penalty-free withdrawal. Not available in all states. |
| LMG4177v0919 | FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS. |
Launch Ignites Excitement
Last month we launched our newest fixed indexed annuity, FutureMarksm, and the response made it immediately clear that the market has been thirsty for a product that offers both accumulation and premium protection.
FutureMarksm highlights include:
- Unique pre-blended strategies that simplify diversification and lock in rates for five years.
- A no-cost enhanced death benefit rider with no underwriting or waiting period.
- Exceptional 8% street-level commission* through age 75.
Excitement continues to grow as Legacy and FutureMarksm are included in the September issue of InsuranceNewsNet Magazine. For more information on training, sales tools, or to run an illustration, call the Legacy Sales Team at 800-395-1053, Ext. 4002.
FutureMarksm 10, 10 LT (Contract Series 416/4416). BeneBoostersm guaranteed minimum death benefit rider (Rider Series 2182). Products are single premium deferred fixed indexed annuities underwritten by Americo Financial Life and Annuity Insurance Company (Americo), Kansas City, MO, and may vary in accordance with state laws. Products are designed and exclusively marketed by Legacy Marketing Group®, an independent, authorized agency of Americo. Some products and benefits may not be available in all states. Certain restrictions and variations apply. Consult contract and riders for all limitations and exclusions. The Optimizer administrative fee of 1.00% will be deducted from the Accumulation Value at the end of each contract year, including the first.
| * | GA level. See Compensation Schedule for details. |
| LMG4177v0919 18-625-10 (09/19) |
FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS. |
Making Sense of Rate and Cap Decreases
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My inbox is full of industry-wide rate reduction and product change announcements. What’s driving the changes, and how can I continue to bring value to my clients? |
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The great news is that, although rates and caps have changed recently, all client-friendly product features remain intact on Legacy’s entire suite of fixed indexed annuities, so you can feel confident with your product recommendation. Not only that, but many of the participation rates on our proprietary index strategies, which are based on indices that include built-in volatility controls, are still in the triple digits—providing clients with strong earnings potential. To address your question about what’s driving rate decreases, it’s due to a combination of a drop in benchmark interest rates and market volatility. The U.S. has seen a significant decline in benchmark interest rates lately, driven by a combination of international political tension and the Federal Reserve’s first interest rate cuts since 2008. Notably, the U.S. 10-Year Treasury yield recently dropped to a near all-time low, and the U.S. 30-Year Treasury yield has declined to its lowest point in history. While these key rates don’t directly affect declared FIA interest rates and caps, they do have an impact on an insurance company’s anticipated earnings in safe-money investments. Because insurers must spend money to support a product’s guarantees, it means there is less money to purchase index options that provide the opportunity for index-linked upside. To combat this, in addition to rate decreases, some insurers have reduced bonuses, roll-up rates, payout factors, and other guaranteed elements of their products. Additionally, market volatility is a driving factor in determining and supporting FIA rates and caps. Typically, when volatility goes up, so do index option prices, meaning an insurer can purchase fewer options. The more options an insurer can buy, the higher caps and rates it can support. Legacy’s carrier partners are committed to passing along higher earnings potential in the form of rates and caps to clients. They will continue to monitor the interest rate environment and look for opportunities to raise rates in the future while maintaining the integrity and sustainability of the products. In the meantime, be sure to check out our proprietary index strategies. Because they are based on volatility control indices, they offer participation rates that are much higher than those you would find on a benchmark index such as the S&P 500®. Visit www.legacynet.com/qrs to view rates on all Legacy exclusive products. |
Your Role Is Growing More and More Important
The world of annuities and financial planning in general is becoming ever so complex—with exponential options and numerous regulations designed to help consumers plan for retirement. It is at this juncture that you have a prime opportunity and duty to educate your clients.
To support your clients’ best interest, you will need to “educate them about all of their options without overwhelming them or selling them on anything,” says Cole Stoneman, a Forbes Councils Member.1 He believes behavioral finance research can help here. Stoneman continues, “[T]he best way to understand them is through a moderate or middle-ground approach—recognizing how a client’s mindset might impact their financial choices for better or worse and helping them get out of their own way.”
Click here for the article, and to read more about how you can become better prepared to educate and guide your clients.
1. Cole Stoneman, “Understanding Annuities With The Help Of Behavioral Finance” Forbes (July 25, 2019).
Tips To Speed Your FireLight® Business
Our FireLight® e-application makes it simple to submit in-good-order applications the first time, helping to reduce processing time and speed your commissions. Reviewing these reminders will save you even more time!
- Before downloading an application, make sure you’ve taken the required product training.
- To generate the correct application and required forms, be sure to select the correct solicitation/signed state.
- While Americo Financial Life and Annuity Insurance Company will allow an e-Signature on transfer forms in certain circumstances, it is always good business practice to also obtain a wet signature in case the transfer company requires it. Currently, Ameritas Life Insurance Corp. prompts you to print the transfer form and obtain your client’s signature as part of its business practice.
- The title of a person signing on behalf of the owner as Guardian/POA (or on behalf of a trust or corporation) must be indicated after their e-Signature, e.g., John Doe, POA.
- When a trust is the owner (or a person is signing as Guardian/POA on behalf of the owner), be sure to attach the appropriate legal documents.
To locate FireLight®, visit the LegacyNet® Point-of-Sale Materials page, where you’ll also find a host of resources including our FireLight® Overview and Application Entry training modules. For additional assistance, or to arrange for FireLight® training for your staff, call the Suitability Help Desk at 800-395-1053, Ext. 5819.
| LMG4177v0919 18-625-10 (09/19) |
FOR AGENT USE ONLY. NOT FOR USE WITH CONSUMERS. |
Five Facts About Eric M. Williams, Legacy’s New National Sales Leader!
- Eric is responsible for developing Legacy’s sales strategy, leading our regional and internal sales teams, and establishing and growing relationships with Independent Marketing Organizations—a task for which he’s well prepared, with more than 20 years of financial services experience.
- In his own words, “nothing makes me happier than taking a complicated insurance or investment product and developing simple, powerful messaging that clearly communicates its value proposition to distributors, Producers, and consumers.” And now you have a glimpse of why we are so excited to have him aboard!
- As a new addition to Legacy, we asked Eric what appealed most about this opportunity. He responded, “It was the long-tenured employees of Legacy and the extremely experienced team of individuals who each have been there for many years. Anytime you see this trait in a company, it says something about them, about their culture, and what they stand for. I appreciate that about Legacy and am excited to be here.”
- Outside of his work, a couple of things that bring him joy are college football and running. Eric began running four years ago and has since run in six marathons, including the 2018 Boston event and a couple dozen half marathons.
- Additionally, Eric enjoys traveling—for leisure and business alike. It’s one of the many reasons Eric enjoys his role as National Sales Leader. In addition to his extensive business travel, Eric and his wife travel for fun, including faraway places like Hong Kong and Tasmania.