Tuesday Tips – May 17th, 2016
F&G just issued a bulletin that some licensed agents may be receiving emails stating that they owe money to F&G and that they need to download an attachment and pay or they will be subject to legal action. These are fraudulent emails and if you receive one you should notify F&G.
Global Atlantic Training Reminder
Reminder that in order to sell FIA’s through Global Atlantic’s subsidiaries you must complete updated product training even if you completed it prior to the launch of the BlackRock Diversa Volatility Control Index.
Income Rider Maximization
Many clients elect to take a joint payout option when purchasing an income rider so that income is guaranteed over the lives of both spouses. A potentially better strategy to increase income and reduce taxes is incorporating life insurance within the income plan. By electing the single life payout and taking the difference between that and the joint payout you can fund a life insurance policy. At the death of the first spouse the tax free death benefit can be used to continue the income stream for the rest of the surviving spouses life. This strategy can be especially impactful on distributions of qualified funds as the benefit from the life insurance policy will only be partially taxable if dumped into a life only SPIA as opposed to 100% taxable over both clients lives. Call today to see this concept illustrated.
Metlife Pays Penalty
Metlife was served a penalty of $25mm in regard to compliance failures for clients who were switched from one variable annuity to another that weren’t in the clients best interest.
AIG Max Accumulator + IUL
AIG has introduced a new competitive IUL with some unique features. The policy offers a lifetime income rider that will guarantee an income for the rest of the clients life. In addition to this it has the option for annual adjustments to increase income over the clients life. It also offers a chronic illness rider that doesn’t require the condition to be permanent and has a max benefit pool of $3mm. Call today for additional details.