3RD QUARTER 2014
Creating Reliable Retirement Income (PAGE 6)
Inside: What’s Your Disaster Plan? Page 12 Who’s YOUR Annuity Geek? Page 14 Don’t miss these LIFE Opportunities! Page 18
800.710.1115
Rates available 24/7 at www.greatplainsannuity.com
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PRINCIPALS • Rich Hellerich • Robb Edwards
ANNUITY SPECIALISTS
3RD QUARTER 2014
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CREATING RELIABLE RETIREMENT INCOME
Mike Lair, GPALM Senior Vice President of Annuity Marketing, wrote this article for the May issue of Broker World (reprinted with permission) focused on helping clients make a plan for the “decumulation” phase of retirement. What should your answer be when clients ask “how much”…
• Mike Lair, Sr. V.P., Annuity Marketing • Cindy Nelson, V.P., Annuity Sales • Brad Allen • Carlos Rojas • Chad Palmquist • Jane Plumberg • Kara Jones • Scott Andrew
LIFE SPECIALISTS • Dick Reynolds, CLU, V.P., Life Sales
ADMINISTRATION • Cris Larson • Naomi Mayekawa • Mackenzie Oakley • Kathy Putnam
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WHAT’S YOUR DISASTER RECOVERY PLAN?
What would happen to your business if your office was ravaged by a tornado, flood or fire? Vice President of Annuity Sales Cindy Nelson shares some thoughts on important precautions you can take to ensure your ability to help your clients and return to “business-as-usual” in the event of a disaster.
10901 W 84th Terrace., Ste. 125 Lenexa, KS 66214 Toll Free: 800-710-1115 Local: 913-492-9994 • Fax: 913-492-9998 www.greatplainsannuity.com For financial professional use only. Not for use with the general public.
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COMPLICATED MADE EASY
Learn how Great Plains can help you simplify your search for the best GLWB solutions to fit various client income planning scenarios in minutes, then call your Annuity Marketing Specialist for a sample!
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ARE YOU MISSING OUT ON LIFE?
Clients and Prospects are missing out on life products they are not aware of. Are you missing opportunities to better serve your clients and set yourself apart from other agents? Today’s life insurance market offers many solutions and new benefits you and your clients should know about.
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This publication is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Great Plains Annuity & Life Marketing, its affiliated companies, and their representatives and employees do not give legal or tax advice. Encourage your clients to consult their tax advisor or attorney. Great Plains Annuity & Life Marketing is not affiliated with third party vendors mentioned in this magazine nor do we guaranty the accuracy or quality of their services. Although we may promote and/or recommend the services offered by these companies, financial professionals are ultimately responsible for the use of any materials or services and agree to comply with the compliance requirements of their broker/dealer and registered investment advisor, if applicable, and the insurance carriers they represent. The third party links, information, and opinions included in this magazine are provided as a service to you. They have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Great Plains Annuity & Life Marketing. The material is being provided for information purposes only and is not a solicitation for the purchase of any product. The information is not intended to be used as the sole basis for financial decisions nor should it be construed as advice designed to meet the particular needs of clients. Financial Professionals should ensure they continue to follow the current policies on the use of any advertising, third-party materials and/or social media as required by their broker/ dealer and registered investment advisor, if applicable, and the insurance carriers they represent.
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Creating Opportunity for You... Hard to believe we are speeding towards the end of summer and over halfway through the year! Thanks to you, Great Plains is enjoying another great year in terms of submitted and paid annuity and life production! Here are three items I am personally working on and want to bring to your attention as we focus on the last half of the 2014 sales year... After-Market Assignments: We continue to see great opportunity for agents using After-Market Assignments to offer clients and prospects better short to long term crediting rates. While After-Market Assignments are not a fit for every producer, they have proven to be a great door-opener for agents looking to differentiate themselves from the pack, especially in front of high-net worth clients. In addition, we have expanded services available in the Structured Settlements arena and several producers have taken advantage of our enhanced capabilities. If you know or have relationships with personal injury attorneys, we can help you secure competitive quotes for initial settlement cases. Feel free to call your Annuity Marketing Specialist here at Great Plains or contact me directly to discuss these opportunities.
IRA Rollovers: You may be missing a great opportunity to expand your business and help business owners take control of their retirement futures. In today’s financial marketplace, prospects enrolled in an employer-sponsored retirement plan (i.e. 401(k), 403(b), profit-sharing plan) and nearing retirement age may be concerned with the impact a potential market downturn could have on their account balance, just when they need it the most. Watch for more information from Great Plains later this year! Dollars for Donuts: I’m personally conducting a pilot program with a very limited number of agents focused on developing professional referral relationships. Initial results are quite promising. I believe this program can have more immediate impact for producers with a high profile and existing professional relationships in their local business community, and of great value to agents willing to be patient in taking the time necessary to develop these connections. More to come...
Rich Hellerich
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LibertyMark 7, LibertyMark 10, 10 LT (Policy Series 411/4182), and LibertyMark 10 Plus, 10 LT Plus (Policy Series 411/4179/4182/4184) 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 distributed by Legacy Marketing Group®. Some products and benefits may not be available in all states. Certain restrictions and variations apply. Consult policy and riders for all limitations and exclusions. Legacy Marketing Group and Richard Hellerich (Great Plains Annuity & Life Marketing) are independent, authorized agencies of Americo. Past performance is no guarantee of future results. Any such illustration must not be regarded as guaranteed or as an estimate of future performance, unless it is based solely on the minimum guaranteed interest rates. The S&P 500 Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Americo Financial Life and Annuity Insurance Company (“Americo”). Standard & Poor’s®, S&P® and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Americo. Americo’s LibertyMark annuities are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. * Includes application of 1.25% Liberty Optimizer Fee on LibertyMark 10 no bonus product. ** 80% is current first-year participation rate effective May 8, 2014. Rates are not guaranteed and are subject to change. † “Winks Sales & Market Report,” www.annuityspecs.com (March 10, 2014). Average Annual Reset Pt-to-Pt cap, no bonus products. AF1049v0414_GP 14-609-9 (04/14) FOR BROKER USE ONLY. NOT FOR USE WITH CONSUMERS.
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Creating Reliable Retirement Income Helping Clients Make a Plan for the “Decumulation” Phase of Retirement Editor’s Note: Mike’s article originally appeared in the May, 2014 issue of Broker World magazine and is reprinted with permission. I recently saw a cartoon showing a boomer couple reviewing their retirement assets. The caption read, “If we take a late retirement and an early death, we’ll just squeak by.” Like most humor, there is a serious element of truth for many in that caption. With the estimated 7,000 baby boomers reaching retirement age every day, retirement income planning will be critical for our clients and become one of the most important topics affecting their lives. Imagine, for the purposes of this article, that you are lucky enough to be meeting with clients or prospects that have faithfully saved for retirement via their 401(k) s, IRAs, annuities and other savings earmarked for retirement, and you hear the inevitable question: “How much do we need to fund our retirement?”
An appropriate response to clients asking the “how much” question should be “it depends.” To help your clients determine their number, ask if they can specifically answer the following questions: 1. When do you want to retire? 2. What kind of retirement do you want? 3. Will you have any major health issues during retirement? 4. When will you die? Before you accept their answer to the first question, know that “The MetLife Report on the Oldest Boomers” (May 2013) found that only 38 percent of those surveyed reported leaving the work force on their planned retirement date. Of those who retired earlier than expected, 25 percent left the work force early due to the loss of a job, and 32 percent cited health reasons. (Continued on page 8)
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www.greatplainsannuity.com Contract provisions and availability may vary by state. Nursing Home Waiver not available in MA. MarketTwelve Bonus Index contract issued on Contract Form Series ET-MPP-2000(02-05) with Rider ET-AVBR(06-09). Income For Life Rider issued on form Series ET-IBR(06-08). EquiTrust Life Insurance Company, West Des Moines, IA. AC14-IBRILL-1092
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Creating Reliable Retirement Income (CONTINUED) Also, in a perfect world, consumers would start their retirement income planning a minimum of 5 to 10 years prior to leaving the work force. I fear there are many pre-retirees who would be shocked after completing the budgeting exercise below. Be prepared for that shock to manifest itself in an emotional response if your review suggests there is a lack of sufficient assets to fund their retirement dreams. Allow me to also suggest that you may want to consider approaching “younger” prospects (ages 45 to 55) and help them understand the importance of setting retirement income goals while they are in their peak earning years. Given our current economic situation and concerns over the long term viability of Social Security, I believe there is a real opportunity to build relationships and clients in this younger demographic. Solving for Retirement Income: First Things First Every client’s scenario is different. Let’s assume you are sitting with Jack and Betty, ages 62 and 61 respectively. Jack intends to retire on his 66th birthday, and Betty is worried about having him at home all day, every day. Both are in good health. Pull out your fact-finder and let’s go to work. Your BGA/IMO should be able to offer you access to a number of fact-finder templates. Find one that works best for you to expose “forgotten” expenses, and help prospects consider factors and potential issues for their golden years. There are a number of excellent and varied formats available from the leading fixed annuity carriers. Before We Begin: This is the time to have a general discussion on retirement goals your prospects envision. Are they going to pursue dreams of travel or an avocation that will generate income? Are the children self-sufficient or a cost center? Understanding their concerns, dreams and desires will
Call your Great Plains Marketing Specialist or visit: www.greatplainsannuity.com/subscribe to request your FREE Subscription to Broker World Magazine!
better position your conversation and ability to provide either good news or a reality check, depending on the amount of their total retirement assets. Budget: What do Jack and Betty anticipate in basic expenses? Besides the obvious: food, utilities, auto, taxes, etc., be sure to detail insurance premiums including chronic care/ LTC premiums. Considering the cost of potential health issues is just as important as longevity risk. Understanding the anticipated costs of their fundamental needs is the first step for the budget process with consideration for the impact of future inflation and taxes. Reserves: Discuss the impact of unexpected expenses and the need to have three to six months income in reserve. Are there any major repairs or expenses lurking in their future? Having a ready cash reserve for such items eliminates disrupting budget items and income flows later should the need arise. The Bucket List: Once basic needs have been estimated, you can now address their retirement wish list for travel, hobbies and discretionary interests. These items are the difference between “existing” and a “fulfilling” retirement experience. Also note that these budget items are potentially the first to be affected if major financial disruption occurs. Income Sources: Once the budget is clearly defined, we can begin to build retirement cash flow. The foundation for most clients will be their Social Security benefits. Ask yourself if you are currently prepared to help educate clients on this topic.
Your knowledge of Social Security benefits and ability to provide clients resources to help them claim benefits is the foundation of most retirement income streams. • What is Jack and Betty’s expected income from Social Security benefits? • Have they reviewed their Social Security benefit statement for accuracy and to gauge the expected amount of income for this important asset? • Do they understand the various Social Security claiming options they should consider and the importance of aligning these benefits with their other sources of income and possible tax and benefit reduction consequences? Where are Jack and Betty’s other income assets (401(k)s, IRAs, pension, savings) currently positioned, and are they guaranteed or subject to risk? The answers to these questions become an opportunity to explore Jack and Betty’s financial risk tolerance. Depending on their saving/ investment philosophy, and if there is enough of an asset base to cover basic expenses and potential health issues, education on the potential benefit of positioning a portion of their assets in principal-protected and guaranteed financial vehicles is certainly in order. If a conservative approach is desired, fixed indexed annuities with income riders merit discussion, especially if in-service rollovers are available from 401(k) or other pension plans to an IRA they can control. (Continued on page 10)
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www.greatplainsannuity.com For Agent Information Only. Not Intended For Solicitation Or Advertising To The Public. *Subject to change. Preserve MYGA is a modified single premium deferred annuity issued by Guggenheim Life and Annuity Company, Indianapolis, IN. on policy form series GLA-MYGA-01, available in most states. Guarantees are based on the claims-paying ability of the insurance company. 061401A
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Creating Reliable Retirement Income (CONTINUED) Depending on what Jack and Betty have in place for potential long term care issues, the chronic care provisions recently introduced on a number of fixed indexed annuities may also be of interest. Our goal is to provide Jack and Betty the best guaranteed amount of lifetime income with the least amount of premium possible. Besides setting the initial retirement income needed to cover expenses, consider potential income needs at different stages of their retirement cycle. If there are sufficient assets for travel, this will more likely happen early in retirement rather than later. Accounting for increased health and prescription costs later in retirement may be warranted. Also discussing “what if ” possibilities of their expected Social Security income changing in the future and the impact inflation and future taxes may have on their income needs is in order. Assets not needed to meet guaranteed income needs can be placed in financial vehicles that may risk principal but offer the opportunity for higher returns. Depending on Jack and Betty’s risk tolerance, they may want to explore life insurance options with these funds that guarantee a legacy for family or charity. From this initial conversation and budgeting process you are now armed with the information you need to build a retirement decumulation strategy and income solution offering guaranteed lifetime income and some flexibility to address potential financial changes. Fixed and fixed indexed annuities, when properly applied, may offer one of the best opportunities to guarantee basic income needs while providing flexibility for the future. Contact your annuity marketing organization (AMO) or interview potential marketing partners by asking about their ability to help you with this kind of case development.
A Laddered Approach Use of laddered financial assets, to be turned into income streams at different times, can be the key to optimizing retirement income. Again, use your AMO or BGA to assist you in building a laddered approach for your prospects to consider. Here are some issues to focus on in building a proposal: • Need to set “minimum” income needs based on budget. • Social Security—the big question. Do you consider it an income stream that can be counted on, or one that could go away? Conservative clients may want to plan based on Social Security benefits being reduced at some point in the future. • Minimum needs should use base investments with guaranteed lifetime income without risk, such as single premium immediate annuities (SPIAs), deferred income annuities (DIAs), FIAs with income riders, bonds, etc. • Tax considerations should be taken into account during transition. When doing income planning consider the after-tax income. For qualified funds, generally all income is taxable. For non-qualified funds, certain vehicles such as SPIAs create tax-favored income where only a portion of the payment is taxable. • Inflation needs to be accounted for by income producing assets that will increase, or by creating “laddering” of investments that can generate income on a guaranteed basis at a certain level to at least keep pace with consumer price index (CPI) inflation.
and about 10,000 more will reach that milestone every day for 19 consecutive years. They are faced with increasing longevity risk, the current economic environment of low interest rates and a volatile market, and many need a reality check in terms of their retirement “wants” compared to what they can afford. Very few will enjoy a pension, and if managing their 401(k)s while employed was a challenge, imagine their angst in dealing with creating their own retirement paychecks. You have the opportunity to become a resource for helping boomers in your community with retirement planning education and setting realistic expectations. Your knowledge of the guaranteed and principal- protected products of the insurance industry and ability to help them understand their options may mean the difference between retirement chaos and actually enjoying the retirement they envision. MICHAEL P. LAIR Senior Vice President Annuity Marketing mike@gpam.biz Mike has spent the last 25 years of his career either in direct sales or sales support/training roles focused primarily on the annuity market. His experience includes John Hancock Financial Services, Fort Dearborn Life and Transamerica, where he was promoted to regional sales director for fixed annuities in the 19 state central region. He joined Great Plains Annuity Marketing in 2004.
According to the Pew Research Center, on January 1, 2011, 10,000 baby boomers turned 65,
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Target Annuity “Sweet Spot” The Early Income Client TargetHorizon income riders break through rollup rates, payout factors and income account values to go straight to the heart of retirement planning – lifetime income. Whether your clients need income sooner or later in retirement, TargetPaySM and TargetPaySM Plus give you a compelling income story.
You don’t need rollup rates or income account values to have great income! Hypothetical scenario
Assumptions: 100k premium
TargetHorizon 10 with TargetPay
Age 65
Annual Lifetime Income Benefit
Competitor A Annuity
Competitor B Annuity
Competitor C Annuity
7% Compound Rollup and 10% Premium bonus
7% Simple Rollup and 6% Premium bonus
6.5% Compound Rollup and 12% Premium bonus
Annual Lifetime Income Amount
Annual Lifetime Income Amount
Annual Lifetime Income Amount
$6,738 3.3Lower %
Than Target Pay
Required competitor rollup to match TargetPaySM income
$6,350 8.8 Lower
8.2%
Compound
%
Than Target Pay
10.5% Simple
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$6,794 2.4 Lower %
Than Target Pay
7.5%
Compound
Deferred income for 3 years
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$6,572 5.6 Lower %
Than Target Pay
10.5% Simple
800.710.1115 www.greatplainsannuity.com
For agent use only. Not for use with the general public. TargetHorizon 10 Annuity TBS10 (09/12), TargetHorizon 10 Select TBS10 (09/12) NB, TargetPay Income Benefit Rider TBSIRF (09/12), TargetPay Plus Income Benefit Rider TBSIRI (09/12) or state variations are issued by Athene Annuity and Life Company, West Des Moines, IA. Product features, limitations and availability vary by state; see the Certificate of Disclosure for details. This information is not intended to be a comprehensive evaluation or comparison of different products. Customers should examine all aspects of the annuity product and available riders that they are considering. It is intended to provide comparative information on specific aspects of similar products. Competitor information is current and accurate to the best of our knowledge as of May 2013. The data shown is taken from various company illustrations. Product features and rates are subject to change. These values are not guaranteed; the use of alternate assumptions could produce significantly different results. 55734
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I recently lost a wonderful relationship with very successful and long-time producer when he retired unexpectedly. His retirement was not by choice, but forced upon him by a fire that not only destroyed his office and everything in it, but his practice as well. He had no backup to any computer data, and had resisted the expense of converting file cabinets full of paper documents and financial information accumulated over the years to electronic format. After six months of painful and tedious efforts to reconstruct this information (and frustrated clients) he threw in the towel and retired. His experience prompted Great Plains to review our own Disaster Recovery Procedures, and I hope you find this article to be an “alarm” that will help you avoid such a fate. How quickly could you reopen your practice if you suffered a fire, tornado, flood or some other natural disaster?
at least one fire extinguisher in the house. Make sure that exterior doors and windows are locked. Have a home security system installed. Have a sump pump available if your office is in an area that could flood. 5. Have a plan B. If your home office is destroyed where will you work from? Where will you get a computer? Where did you leave those backups...? You get the idea. Think it out first before the emergency happens. In addition, here are three best practices to help avoid unwanted downtime.
Many of our producers work from home or small offices, and these guidelines (supplied by our I.T. vendor, Network Technologies) are presented with this business model in mind. If you work with an I.T. support vendor and do not have a disaster recovery plan in place, schedule an appointment today to discuss solutions that fit your operation.
1. Use anti-virus software and keep it up to date. Yes anti-virus software is a pain and can seem like a waste of money. However, it only takes one time to make you a believer. Remember, your anti-virus software is only as good as its last update. As a best practice automatically update your anti-virus once a day.
Items to consider:
2. Keep Windows and other programs up to date. If you are using Windows XP you are asking for trouble at some point in time. Use Windows’ automatic update feature to keep your operating system current.
1. Back up your business critical information. Yes, this seems obvious, but are you doing it? Decide what your business cannot do without and make sure it gets backed up. Be selective. Not everything needs to get backed up. 2. Make sure you keep a copy of your backup in a location other than your home. If your home is destroyed you don’t want to lose your business with it. Store your backups in a safety deposit box or at the home office, but make sure it gets out of the house. Depending on how much your data changes you may need to rotate or update the off-site backup on regular basis. How much rework can you reasonably do?
3. Change your password and make it complex. Passwords can be taxing to remember, but a good password is the front line of your defense. Make sure you password is at least 10 characters long and contains uppercase, a number, and a special character. For easy recall use a pass phrase. To make your password theoretically unbreakable use 14 characters.
3. Use quality surge suppressors and battery backups. No, I am not talking about a power strip. The best way to deal with an emergency is to avoid one altogether. These relatively small and inexpensive devices can save you the heartache and headache of starting over on a new PC.
I believe the vast majority of agents we work with at Great Plains define their “Critical Mission” to be “helping clients avoid financial disaster”. In the event of a natural disaster, be sure you can get your office back “online” quickly and continue to serve your clients’ needs!
4. Make sure your home or office is maintained and physically secure. This is common sense for any homeowner but doubly important for a home office. Ensure smoke detectors are functioning and that you have
Cindy Nelson Vice-President Annuity Sales Cindy@gpam.biz
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800.710.1115
www.greatplainsannuity.com
Agent Name Agent Name Company Name Company Name Address Address City, State Zip City,Phone State Zip Phone Website Website
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IMPORTANT
ANNUITY IRS Change Regarding IRA Rollover Limits In case you missed it, the IRS recently updated (May 14, 2014) its interpretation of the ‘one per year’ rule regarding IRA rollovers per a recent tax court ruling. With the amount of rollover cases we see at Great Plains, it is important that you note this change to better advise your clients and avoid any potential sales issues. You can find the actual IRS official announcement at http://www.irs.gov/Retirement-Plans/IRAOne-Rollover-Per-Year-Rule.
Direct Transfer (Trustee to Trustee) Direct transfers are between two institutions, where the client does not receive the funds. For example, a client has an IRA annuity with Company A that they would like to replace with Company B annuity. The client can initiate a transfer of the funds from Company A to Company B by filling out the Transfer/1035 Exchange Request form. Company B will then receive funds directly from Company A. The rules for direct transfer have not changed. There can be unlimited direct transfers between companies where the client does not take control of the funds.
Rollover (Trustee to Client to Trustee) Rollovers are when the client receives qualified funds, which then must be deposited in a qualified vehicle within 60 days to avoid tax penalties. For example, a client surrenders an IRA account (CD, Mutual Fund, Annuity, etc.) with Company A and receives the funds. The client then purchases Company B annuity with the surrendered funds within 60 days. Old IRS Interpretation - The client can do one rollover of each account once per year. So if they have 3 different IRA accounts, they can do 3 different rollovers per year, one for each account. Current IRS Interpretation - The client can do a single rollover per year. So if they have 3 different IRA or qualified accounts, they can only rollover one per year (others must be done via direct transfer). Please keep this important change in mind as you work with your clients transferring money from an IRA or other qualified accounts, and call your Great Plains Annuity Specialist to discuss any cases involving IRA rollovers to ensure case placement and a smooth transfer of funds.
Treasury Issues Final Rules Regarding Longevity Annuities On July 1, 2014 the U.S. Department of the Treasury and the Internal Revenue Service issued final rules regarding qualifying longevity annuity contracts (QLACs) also known as deferred income annuities (DIAs). The rules, effective immediately, state that the value of these annuities can now be excluded from RMD calculations, which can be no more than 25% of an individual’s qualified account balance up to a maximum of $125,000. In addition, payouts can start as late as age 85. For a full copy of the Treasury Department release visit http://www.treasury.gov/press-center. The ruling makes longevity annuities available to the 401(k) and IRA markets, expanding retirement income options as more Americans reach retirement age. Watch for new product announcements as carriers react to this new opportunity to help clients with an additional income option. Great Plains currently offers a carrier and DIA product that allows deferral beyond age 70 ½ and a number of additional carriers in various stages of product development. These new products will be based on a traditional fixed annuity chassis, with indexed and variable annuities specifically prohibited currently. For more information on this new annuity sales opportunity and our current product offering contact your Great Plains Annuity Marketing Specialist.
Find out how much your referral is worth! Just like you, we know referrals are the best leads we can receive. We want your referrals and we are willing to make sure you get something for them! Contact your Great Plains Marketing Specialist for details or visit http://www.greatplainsannuity.com/referral.aspx!
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Stack your team with a heavy-hitting fixed indexed annuity lineup:
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Carrier
Fidelity & Guaranty Life Insurance Company
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10-year: 10, 10 Plus, 10 LT, 10 LT Plus. 14-year: 14, 14 Plus.
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Bonus
10-year: 7% (3.5% 76+). 14-year: 10% (5% 76+). (vesting bonuses)
7-year: no bonus. 10-year: 5% upfront premium bonus, 10% accumulation bonus at end of Year 10 (8% LT states).
Income Rider
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Fee for optional indexed interest options: 1.00%. Income Rider Charge: 0.70% of income base.
Annual Liberty Optimizer Fee 7-year: 1.00%. 10-year: 1.25%.
Minimum Guarantee
Between 1% and 3% on 87.5% of premium received, less all prior withdrawals.
Between 1% and 3% on 100% of premium received, less surrender charges.
Initial Premium
$10,000
$5,000 NQ $2,000 Q
GA-Level Commissions
Three age bands for max comp! 14, 14 Plus = 8.50% 10, 10 Plus = 7.50% 10 LT, 10 LT Plus = 7.00%
Full comp to age 80 in most states! 7, 10 LT, 10 Plus = 7.00% 10 = 8.00% 10 LT Plus = 6.50%
Great Plains Annuity & Life Marketing 800-710-1115 robb@gpam.biz www.greatplainsannuity.com 10901 W. 84th Terrace, Ste. 125, Lenexa, KS 66214
Products distributed by Legacy Marketing GroupÂŽ. Some products and benefits may not be available in all states. Certain restrictions and variations apply. Consult contract for all limitations and exclusions. Refer to contract, Earnings Rate Update, sales guide, Compensation Schedule, and State Approval Matrix for details. LibertyMark 7, LibertyMark 10, 10 LT (Policy Series 411/4182), and LibertyMark 10 Plus, 10 LT Plus (Policy Series 411/4179/4182/4184) 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. Legacy Marketing Group and Richard Hellerich (Great Plains Annuity & Life Marketing) are independent, authorized agencies of Americo. LegendMark flexible premium fixed deferred indexed annuities are issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA. Form Nos: ACI-1018(06-11); API-1018(06-11), et al. * Fifth highest of 16 ratings for financial strength. ** Fourth highest of 16 ratings for financial strength. LMG3678v0514_GP 14-619-3 (06/14) FOR BROKER USE ONLY. NOT FOR USE WITH CONSUMERS. 14-251
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Complicated...
made Easy! Simplify your GLWB search for today’s best Income Rider Solutions by calling Great Plains According to statistics gathered by Wink Sales & Market Report for the fourth quarter of 2013, 61.9% of all Indexed Annuity sales included a guaranteed lifetime withdrawal benefit (GLWB) rider. Clients and prospects concerned about coordinating their Social Security benefits with 401(k) and savings assets to build their personal retirement income strategy are looking for help in evaluating the various GLWB riders available today. Great Plains can help you make the complicated easy when you need to find competitive GLWB solutions for your clients and prospects. Our IncomePLUS Income Rider Comparison Worksheet shows which of our carriers GLWB’s provide the greatest guaranteed lifetime income for your client based on:
Your GPALM Annuity Specialist can also highlight the various riders and benefits now available on many fixed indexed annuities that may be important to your prospect including Chronic Care, Enhanced Death, and Inflationary Income benefits. We’ll also help you with the specific carrier illustrations of the products you decide to present. Call 800-710-1115 and ask your Great Plains Annuity Specialist for a sample illustration of our IncomePLUS Income Rider Comparison Worksheet and additional details. Learn how you can use this this incredible tool to present guaranteed lifetime income solutions and close more sales!
• Initial Premium • Age of the client(s) • Single or Joint Income With just the information above, your Great Plains Annuity Specialist can run and email you a full-color worksheet in just a few minutes! Imagine having the results of up to 19 different GLWBs in front of you while discussing your case on the same call. This illustration will highlight the top two GLWB payouts for years 0 through 20. If you are considering a laddered-income presentation our worksheet can save hours of research analyzing each leg or income segment. Experience has shown us some surprising results or “sweet spots” where particular GLWBs are particularly strong depending on when the income stream is turned on. These results can also help clients see that delaying income for a few years can make a significant increase in their annual income.
from Great Plains Annuity & Life Marketing
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You don’t need a crystal ball to discover the best GLWB Solutions...
Take the mystery out of finding the best GLWB Solutions for your clients with...
Call your Great Plains Annuity Marketing Specialist now and learn how you can take advantage of our GLWB research and other valuable tools to help you help your clients create reliable retirement income.
800.710.1115
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Are You Missing Out on Life?
Clients & Prospects are missing out on life products they don’t know about! I speak to a lot of agents all across the country. The conversations are generally about the markets they work in, the products they are comfortable talking about and what help they need on the case they are presently working on. After awhile, you begin to see elements of our business that work against millions of prospective buyers: 1. Many agents work in markets selling annuities or Medicare products and prospects are missing out on a life product they would have actually bought had the agent known to ask a couple of simple questions. 2. With the advent of the no call list and spam act, the volume of information millions of prospects at all ages could have received has been drastically reduced. 3. Agent training opportunities which cover many reasons of one’s purchase of life insurance
throughout different phases of their life have gone by the wayside as many carriers elected to exit the career distribution system in favor of brokerage distribution. Millions of prospects are left to figure things out for themselves, which more often than not, leads to them doing nothing. In my 30 years in this industry, I’ve never seen as many different life products or riders buyers can chose from today depending on their needs. Just knowing some basic product information leads to sales. Here are a few: • Term insurance — death claims are rarely paid but there is term that has both critical & chronic illness benefits. Discuss mixing in some permanent so something is in force when they actually die years after the term ran out. • Supplementing Retirement Income — taking advantage of cash value life insurance for some income tax free retirement money is not some new idea in our industry. • Annuity(s) no longer needed for retirement income — surrendering the annuity and paying tax on the gain may prove to be much more beneficial for a client and/or their beneficiaries. • LTC Worries — baby boomers in particular have concerns of using most of their assets for these expensive medical services and most never purchased benefits. Other than the stand-alone LTC product where benefits may never be seen, newer life insurance products provide the answer. • RMD’s not needed — because of other assets, there are those prospects who take these RMD’s
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only because they reached the age where it is a requirement. If you look at the net of tax amount left over as a built-in annual life insurance premium then you can easily discuss ideas for either the prospect or their beneficiaries that they had never thought of. • Buy & Sell Agreements — the business has a written document but promises will go unfulfilled if an owner dies. Businesses can suffer as well as owner’s beneficiaries. Easy conversation to have. • Retirees can increase assets for beneficiaries — there are those prospects who have “leave behind” monies already earmarked for heirs at their death. Immediately increasing the asset as well as now passing it income tax free are sales I see all the time. And, the conversation and sale is very simple. Not even an exam. I’ve witnessed agents who previously stayed away from life sales significantly increase their incomes while providing the right benefits to clients. If you wish to take advantage of the numerous life sales that are out there, then please give me a call. You don’t have to be an expert but just willing to learn some basic product knowledge and some questions to ask. When you provide more solutions, you set yourself apart from other agents.
BIG SALES ON ALTERNATIVE LTC PRODUCTS! With the daily population growth in the Senior Market, there are now even more individuals who are concerned with high LTC expenses. Based on applications we receive weekly, many are doing something about it but not with typical LTC products. The idea of spending a fortune in premiums over time and never needing the benefits is a major drawback for clients. Instead, they are choosing the many new options available on life insurance policies. Fewer carriers now offer an LTC product. Yet, the market for coverage has never been bigger. It’s a tremendous sales opportunity to clients ages 50 to 70. And, we have all the different products to support your efforts with clients who wish to preserve their assets.
CALL FOR DETAILS!
Dick Reynolds, CLU VP, Life Department (800) 710-1115 Dick@gpam.biz
800.710.1115
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10901 W 84th Terrace., Ste. 125 Lenexa, KS 66214
800.710.1115
www.greatplainsannuity.com 100% Independently Owned! GPALM PRODUCERS ACCESS ANNUITY & LIFE RATES 24 HOURS A DAY!
Looking for E&O Coverage?
Call your Great Plains Marketing Specialist NOW to discuss how affordable coverage can be! • Claims-made financial services professional liability coverage limited to services provided as a life/ health insurance agent selling life, health, annuities and variable products • Base coverage includes life, accident, health, LTC, including Medicare Advantage and Medicare Supplement • Additional add-on coverages include disability, 24-hour care coverage, annuities, variable products and mutual funds • Pay in full or choose monthly payments
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