Life Insurance: A Critical Step in Building a Secure Financial Future

Asset Marketing Systems?September 12th, 2024

Josh Ver Hoeve – VP Annuity & Life Distribution (Asset Marketing Systems)

We could inundate you with story after story about how life insurance has saved thousands of families who experienced unexpected deaths. However, we also understand that when dealing with retirees or pre-retirees it could be too late for life insurance.

One way to help pass the money to an estate without having to worry about medically qualifying is by using the?Athene BCA?with the?Family Endowment Rider Max (FER MAX)?rider. This Fixed Indexed Annuity with rider has primarily been used for qualified funds when a client is not quite sure whether their goals are accumulation, income, or an enhanced death benefit. The good news is the Athene BCA with FER MAX can provide all of those benefits. However, it works best for qualified money as an RMD (Required Minimum Distribution) solution. The way the?FER MAX?rider works is that it credits the death benefit value by a guaranteed 2% compounded annually, plus 100% of any index credits. For example, if you average 5% annually on your accumulation value, your death benefit value will earn 7%. Most states have also approved up to a 13% up front death benefit bonus when adding this rider.

Here are two main reasons why this is great for qualified money:

• All RMDs are free withdrawals.
• Any withdrawal up to 5% of the accumulation value?will only reduce the death benefit value dollar-for-dollar as opposed to a pro-rata reduction we typically see in the market. When calculated the benefit of this feature long term the value to the client is incredible!

The dollar-for-dollar reduction is an important feature, and the numbers prove it! Due to this type of reduction, you will find your client’s qualified account growing at an incredible rate while still delivering a substantial death benefit. Meanwhile, RMDs, or really any type of income from qualified or non-qualified assets, can be taken without significantly jeopardizing the death benefit value.

I would like to bring your attention to a case study on how this product can benefit a lot of clients.

?

Bill is age 65, and his wife Susan is age 62. The first necessity for Bill is to protect his spouse when he dies by providing life insurance. However, he or his advisor believe one of three things:

1. Because he’s 65, life insurance is too expensive, and he fears that paying the premiums will be a concern later in retirement if he needs that money for income.
2. Bill cannot qualify medically.
3. Bill has $1 million and doesn’t really think he’ll need money other than the RMDs at age 70.5, but he’s unsure and wants flexibility, safety, and a reasonable rate of return.

Bill is like many clients who want their money to be safe while earning a reasonable rate of return, but he also wants it available for income if/when necessary. And, of course, if he doesn’t need the income wouldn’t it be nice to pass on an enhanced value in a lump sum to his beneficiaries?

Take a look at the current?BCA FER MAX brochure?to review all the details on this case study and benefits this product and rider can provide.

I’ll leave you with a couple of additional product notes for September. The rates we can currently offer on FIAs are very good today and this year we have seen the highest in the history of FIAs. Many experts believe that interest rates at their current level are very temporary and they will reduce. Our opportunity to provide the current benefits that these products offer is likely limited. We want to help you help your clients today.

Give our sales team a call for an illustration or to discuss a specific prospect or client case.

888-303-8755

Don’t forget to take a look at Asset’s current top picks for: Annuities, Life, and Income.