Greg's Hits - May 2023

Are Insurance Companies Safer than Banks?

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The recent collapses of First Republic Bank, Silicon Valley Bank, and  Signature Bank were the second-, third-, and fourth-largest bank failures in the history of the United States—smaller only than the collapse of Washington Mutual during the 2007–2008 financial crisis.  Luckily each of these failed banks were rescued by bigger financial institutions swooping in and gobbling up the remains. But, what if more fail?  The FDIC has already publicly stated that there is not enough money in reserve if too many banks fail at the same time—or if just a couple of big banks fail.

Naturally, advisors are getting more and more questions about whether it’s time to move some money out of banks. And they are also asking if insurance companies are safer.  The answer is YES!

Here is what you can share with clients to help them understand why annuities are not as risky as bank assets:

1. Insurance companies must maintain cash and assets worth at least 100% of all the money they would owe to clients if EVERY client asked for their funds at the same time—including enough to cover ALL life insurance death benefits.  The percentage that banks must maintain to cover clients’ assets is ZERO!
2. Every client annuity and insurance policy must be backed by a re-insurance policy. So, even if there were a shortage of funds at an insurance company, there is already another insurer holding enough assets to pay clients and beneficiaries EVERY penny owed.
3. All 50 states maintain a reserve of funds that cover clients’ insurance assets—much like the FDIC offers protection up to certain limits.
   

So, why would anyone risk putting money in a bank asset when they can get tax-deferred growth with MUCH higher returns from annuities—with ZERO market risk?  Call for more on current rates and options.

Annuities that Create Generations of Income … on Non-IRA Funds

One annuity company has annuities that will stretch payments over the lifetimes of their kids, grandkids, and even great-grandkids!  And the payouts get a tax exclusion ratio! And advisers earn multiple commissions; One for the initial annuity, and one for the income stream to beneficiaries when the client dies.

This is a GREAT way to engage with clients and show them a way to pass on funds that will last for a generation or more—without a big tax hit on the inheritance…and avoid probate too!

This is also a perfect way to become the adviser for your clients’ adult children after your clients pass away.  Over 90% of advisers are “fired” once a client dies, but not with a generational stretch income plan through these unique annuities from Integrity Life.  Call for free information, brochures, and illustrations.

Give us a call and let's talk.

‍~ Greg Skogsberg

800-200-9194

Click here for a short video about this month's issue

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We now have annuity contracts with FORTY-FIVE carriers.  More than any other FMO!  And this is just one of the reasons we are The #1 Concierge FMO in America!