Wealth Transfer: Annuities and Qualified Accounts

The Problem What your clients think they will leave to their beneficiaries is not what they will leave to their beneficiaries

Example: IRA Current Retirement Plan YearAge Beg Year Account Value RMD End Year Account Value 170 $100,000.00$3,649.64$100, $100,204.38$3,781.30$100, $100,280.01$3,917.19$100, $100,217.33$4,057.38$100, $100,006.35$4,201.95$99, $99,636.58$4,350.94$99, $99,097.06$4,504.41$98, $98,376.35$4,640.39$97, $97,485.40$4,802.24$96, $96,390.49$4,943.10$95, $95,105.28$5,085.84$93, $93,620.21$5,230.18$91, $91,925.64$5,375.77$90, $90,011.86$5,522.20$87, $87,869.25$5,668.98$85, $85,488.28$5,776.23$82, $82,900.52$5,879.47$80, $80,101.89$5,977.75$77, $77,089.11$6,070.01$73, $73,859.86$6,154.99$70, Year Old Client 4% Annual Earnings, Net of fees Assuming RMDs are not reinvested Assuming 20% tax rate for heirs After-Tax Death Benefit $76,084.22

Example: NQ Annuity Yr Current Value After-Tax Value 1 $ 100, $ 90, $ 104, $ 93, $ 108, $ 96, $ 112, $ 99, $ 116, $ 103, $ 121, $ 107, $ 126, $ 111, $ 131, $ 115, $ 136, $ 119, $ 142, $ 123, $ 148, $ 128, $ 153, $ 133, $ 160, $ 138, $ 166, $ 143, $ 173, $ 148, $ 180, $ 154, $ 187, $ 159, $ 194, $ 165, $ 202, $ 172, $ 210, $ 178, $100,000 Value // $50,000 Cost Basis // 4% Net Annual Earnings//20% tax rate

Your Client “I have $200,000 in Annuities, $400,000 in my 401(k), and $200,000 in life insurance. If I die tomorrow my kids will get $800,000.”

Qualified: Common Beneficiary Options Inherited IRAs Stretch/Multi-Generational IRAs Lump-Sum Which of these passes funds to beneficiaries the way both the owner and beneficiary would like?

Non-Qualified: Common Beneficiary Options Lump-Sum Annuitized benefit Stretch Which of these passes funds to beneficiaries the way both the owner and beneficiary would like?

Lump Sum $100,000 IRA: $80,000 NQ Annuity: $90,000

Inherited IRA/Stretch $100,000

What if… We could increase the value of the asset 20-80% and pass on a lump-sum tax-free to beneficiaries? At the same time the client has access to tax- free funds in case of emergency?

Generation Legacy® One product – two policy numbers Life insurance and SPIA together – 10 year period certain ages – 7 year period certain ages – True SPIA so payments are inheritable Accelerated benefits for terminal illness, chronic illness, or nursing home care

Gen-Leg Illustration $78,450 2/6 ADLs $196,126 Taxable Equivalent Taxes owed on this

Cash Value

Ideal Client Annuity Owner No longer taking withdrawals or only RMDs Do not need this money to sustain lifestyle Want to leave maximum value to beneficiaries

Underwriting 1 2 3

Underwriting: Who Fits Who to write Hypertension Diabetic, controlled High cholesterol Post-remission cancer, after 3 years COPD, 3 years after diagnosis Heart attack, full recovery after 2 years Stroke, after 3 years Who not to write Cirrhosis of the Liver Alzheimer’s/Dementia Been declined past 2 years Multiple Sclerosis ALS Congestive Heart Failure

Prospecting Your existing annuity clients Prospects with IRAs or existing annuities CPA’s

Tools We Offer Simple annuity client call script Existing client pre-approach letter Marketing fliers Point-of-sale tools Complimentary coaching

QUESTIONS? Luke Britt National Marketing Director – Annuities The Insurance Group x.118