Transcript Personal Choice Annuity

Personal Choice Annuity
Personal Choice
Annuity
Agent Training
Personal Choice Annuity
FOR PRODUCER USE ONLY
This presentation is intended for
producer use only and should not
be disclosed to the public.
The information contained in this
presentation is general in nature
and is subject to the applicable
annuity and rider language.
Personal Choice Annuity
Sentinel Security Life
Founded in 1948 and dedicated to the
senior market
Expanding product portfolio that includes:
• Final Expense Life Insurance
• Medicare Supplement/Select
• Hospital Advantage
• Annuities
Competitive Commissions
Strong financial background
Personal Choice Annuity
Basics
• Single Premium Deferred Annuity
• Issue Ages 0-90
• Contribution Limits
– $2500 - $1,000,000
– Qualified or Non Qualified
• 5, 7, or 10 year surrender periods
• Optional Riders allow for flexibility in
withdrawing funds
• Positioned to have industry leading
crediting rates
Personal Choice Annuity
Surrender Charges and MVA
• Surrender charges vary by
state. Please see statespecific Agent Quick Sheet
for details.
• The MVA is specified in the
contract.
• In most states the contract
includes Market Value
Adjustment
Personal Choice Annuity
Ideal Candidates
• People with CD’s
• People with Cash on Hand
• People with expiring MYGA’s
• People worried about market volatility
Personal Choice Annuity
Current Crediting Rates
5 Year
7 Year
10 Year
All States
except FL
and MN
3.30%
3.45%
3.75%
Florida
3.20%
3.35%
3.65%
Minnesota
3.00%
3.15%
3.45%
Rates Effective May 1, 2014.
Personal Choice Annuity
Rider Costs
Optional Rider
Rate Reduction
Death Benefit Feature
0.35%
Required Minimum
Distribution
0.16%
Terminal Illness Nursing
Home
0.15%
Accumulated Interest
Withdrawal
0.08%
Preferred 10% Free
Withdrawal
0.08%
72(t) Withdrawals
0.05%
Personal Choice Annuity
Death Benefit Feature
This rider ensures that upon the death of
the annuitant, the death benefit paid will
equal the total contract value
• Surrender Charges and MVA waived
• Allows for certain payout options
• Required for issue ages 86-90
• Included in all Florida contracts
Personal Choice Annuity
Required Minimum
Distribution (RMD)
This rider allows the withdrawal of a
Required Minimum Distribution
without Surrender Charge or Market
Value Adjustment applied to the
amount of the distribution.
• RMD requirements for annuitants
who will reach the 70 ½ year-old age
threshold.
Personal Choice Annuity
Terminal Illness /
Nursing Home Feature
This rider allows access to some or all
of the funds under certain conditions
like the diagnosis of a terminal illness
or confinement to a nursing home for
more than 90 days.
• Not available in California, Florida or
Pennsylvania
Personal Choice Annuity
Accumulated Interest
Withdrawal
This rider allows a withdrawal of
accumulated interest without Surrender
Charge or Market Value Adjustment
during the Surrender Charge Period.
• Allows for monthly, quarterly, semiannual and annual payments.
• Interest payments may be received in
the first year.
Personal Choice Annuity
Preferred 10% Free
Withdrawal
This rider allows for the first withdrawal
with a value of up to 10% of the contract
value (on a non-cumulative basis) or the
RMD.
• This does not entitle a 10% free
withdrawal on full surrenders.
• This rider takes effect in year 2 of the
contract.
Personal Choice Annuity
72(t) Free Withdrawal
• This rider is for contract owners
younger than 59 ½ years old and
allows for the withdrawal of
substantially equal periodic payments
under IRS Code 72(t) without
surrender charge or Market Value
Adjustment.
• Should not add for annuitants older
than 59 ½ due to no IRS early
withdrawal penalty.
Personal Choice Annuity
Applications - Suitability
• Rider Selection – Remember RMD Rules
• No Riders added (except RMD at a new
guarantee period)
• No Riders may be removed
• Suitability Forms
• 45 Day Rate Lock after Funds Transfers
– Refer to Field Guide for more details
Personal Choice Annuity
Personal Choice
Annuity Disclosures
TM
• Products and available riders can vary by state
• Any annuity with surrender charges may
present liquidity concerns for the client.
• Review other asset sources with the client
including short-term income and liquid assets for
both emergencies and cash needs prior to the
expiry of the surrender charge period.
Personal Choice Annuity
Forms & Applications
Forms available to order
• Agent Quick Sheet
• Client Brochure
• Application Packs
Online Only Forms
• Rate Sheet
• Agent Field Guide
All forms are available on the
Producer Portal
(www.sslco.com/agents)
Personal Choice Annuity
How to Quote
•Download desktop rating software from
the Producer Portal
(www.sslco.com/agents)
Personal Choice Annuity
Contracting Information
E&O required
• Minimum of $1,000,000
Product Specific Training (required in
NAIC Model Regulation states)
• Available on the Producer Portal
(www.sslco.com/agents)
Personal Choice Annuity
Contact Information
Mail:
Sentinel Security Life
Attn: New Business
P.O. Box 65478
Salt Lake City, UT 84165
Express Mail:
Sentinel Security Life
Attn: New Business
1405 West 2200 South
Salt Lake City, UT 8119
Fax:
Phone:
Email:
877-841-8613
800-247-1423
[email protected] or
[email protected]
www.sslco.com
Website: