August 2012 - Creative Edge

New State Product Approvals

Effective immediately, National Western Life’s IMPACT 7S indexed annuity is now available in Ohio, Oregon, Nevada and South Carolina, and the Protector One fixed annuity is approved for sale in Florida. Additionally, NWL will enact a fixed rate change effective for apps received on or after Monday, August 27. All fixed rates will be reduced by 20 basis points, with the exception of the NWL Global Lookback, which will be reduced by 25 basis points. Apps need to be received on or before Friday, August 24to take advantage of current rates. For a current rate sheet or help designing your next case, call your Sales Consultant. 800.992.2642

Related terms: Sales Notes



New Producer Comp Bonus

Annexus is proud to introduce a new commission bonus available to all producers writing Annexus business for a limited time only.Effective August 27 through November 2, the bonus will be as follows: 1.50% for total sales of $1.5 million or more, 0.90% for total sales of $1 million or more, and 0.60% for total sales of $500,000 or more. In addition to the bonus, rates will be changing on the BAA series effective August 23. The premium bonus will decrease from 5% to 4% on the BAA 10 and BAA 12, and a 50 basis points commission decrease will affect all products in the series. Call your Sales Consultant for complete promotion details and rate change information. 800.992.2642

Related terms: Sales Notes



Allianz Annuity Product Changes

Effective September 5, Allianz will discontinue sales of the MasterDex Plus Annuity. At this time, changes will also be made to the MasterDex 5 Plus Annuity and the Income Plus Benefit. The bonus will be reduced from 5% to 3%, the GMV will be reduced from 2% to 1.65% and the lifetime payout percentages on the Income Plus Benefit will decrease by 0.50% in each age band. Lastly, the Endurance Elite Annuity surrender charge period will increase from five years to six years while the fixed rate guarantee and annual point to point cap will both decrease. Contact your Sales Consultant for more details and state specific information. 800.992.2642

Related terms: Sales Notes



Income You Can’t Outlive – A Problem Already In Solution, Continued

My column in the May edition of Creative Edge identified the innovation of the annuity lifetime income rider (LIR) as the solution to chronic underannuitization in America. From scholars to today’s financial pundits, everyone has struggled with the fact that traditional lifetime annuitization (e.g., SPIAs) as the solution to the “income-you-can’t-outlive” problem is used by only a small fraction of the population despite its obvious efficiency and uniqueness. There is no other instrument that can guarantee such income to generally risk-averse seniors (proven theoretically as the maximal strategy by Yarri [1965], Davidoff [2005], and others). Annuities are optimal, because retirees get anywhere from small to huge mortality premiums in their payouts relative to alternative asset returns, depending on age, due to the early deaths of the pool of lives. Yet, this “annuity puzzle” remains.  


“I Gotta Guy” With Family History

Nature or nurture? The age-old debate has raged on for decades regarding just how we’re impacted by our genetics and our environment. As scientists continue making breakthroughs in DNA testing, we’re starting to better understand how our genetic makeup – and therefore our family ties – affects our health. Some 20 years ago in the insurance business, family history had little to do with underwriting outcomes. Today, this critical component of an individual’s overall picture of health is one that needs to be investigated and well-documented to ensure favorable offers are generated for every client.


Celebrate Independents’ Day On Your Time

August 15 2012

by Creative Life Sales Team

The insurance world is much like a house divided: some insurance agents operate as independents while others choose to work through a career system. Most agents have strong feelings about the pros and cons of each side of the house. Although we each have our reasons for selecting the career path that makes the most sense for us personally, collectively we have one goal in mind. We’re committed to providing our clients with the highest level of service and offering solutions that meet their financial, retirement and legacy planning needs. It can be a grueling job, especially in the beginning, but it can also be one of the most rewarding professions that exists.


Your Reputation Precedes You

You’re standing in line to get coffee behind a prospect right now with whom you regularly cross paths. You both live in the same community, frequent the same places and know some of the same people. So, it’s no surprise you ran into this person today. Are you going to spark up a conversation, or wait to see if the individual starts a bit of small talk? Our guess is that you’d engage the prospect and muster up a good chat.


Female Clients, Hear Them Roar

Times are changing, and so is our business. The huge wave of baby boomer retirees has captured our industry’s attention – and rightfully so. Yet, many insurance agents and financial advisors can’t quite seem to put their finger on how to target one particular group of this critical segment: women. According to TD Ameritrade Institutional, a division of TD Ameritrade Inc., women control $8 trillion in assets in the U.S. and are expected to control $22 trillion by 2020. These women want and need your services, possibly more than any other market, so what are you doing to meet their goals and let them grow your business?


Genworth Bonus Changes

Effective August 15, Genworth will be decreasing the premium enhancement on the SecureLiving Index 10 Plus from 5% to 2%. This marks the first change to this product since its launch last year. The change will not impact the SecureLiving Index 7, and caps/rates/commissions/roll-up rate will also remain unchanged. Contact your Sales Consultant for transition guidelines. 800.992.2642

Related terms: Sales Notes



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