In this episode, The Annuity Man discussed: 

• Income Riders vs. Single Premium Immediate Annuities (SPIA)

• Comparison Process

• Strict rules 

• Probability of Improvement

 

Key Takeaways: 

• Stan explains that in some cases, you can potentially swap an income rider from a variable or indexed annuity for a SPIA with a higher guaranteed lifetime income stream.

• To determine if a transfer makes sense, you must: compare the income rider amount, use the accumulation value (not the income rider value), ensure the new annuity provides a higher contractual guarantee, verify the transfer is a non-taxable event

• The annuity industry has strict rules to prevent unnecessary "flipping" of annuities. Any transfer must demonstrate a clear financial benefit to the consumer, with a side-by-side comparison showing a higher contractual guarantee.

• Stan estimates that about 70% of the time, you won't beat the existing income rider by transferring to a SPIA. However, he recommends checking to ensure you have the highest possible contractual guarantee.

 

"The annuity industry does not want agents and advisors out there transferring an account to create a commission for the agent or advisor. Whatever you think about the annuity industry, they really do care about the consumer." —  Stan The Annuity Man. 

 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [email protected] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

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