Greg's Hits - May 2024

Editorial Correction

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Last month I mentioned that we had a contract with a carrier that could offer an index annuity to a 96-year-old. Well, that’s not 100% accurate.

This index annuity will write up to age 99! BUT only if there is an annuitant who is 80 or under. The carrier is “A+” rated, and the annuity has 25 crediting methods to choose from—with 10 different indexes!

Electronic Applications

At the risk of repeating myself…You MUST try electronic applications! I sold over $1,000,000 in index annuities myself last year and did 90% of them through E-applications.

Here’s why…

1. It’s WAAAAAAY faster. I can do 3 Electronic applications at the same time it takes to do a single paper app.

2. You don’t have to carry around 72 pages of paper.

3. If you make a mistake, the system will tell you about it, and even explain how to fix it. This is HUGE, because if you make a mistake on paper, you won’t find out about it until the application gets processed a week later by the carrier. Which also means…

4. Because the system prevents 98% of mistakes, you don’t have to go back to meet with the client to fix the mistakes and get a new form signed.

5. You don’t need a printer, ink, and TONS of paper!

6. You GET PAID FASTER! Because E-apps get processed 25% to 80% faster than paper.

7. The system will tell you if you’ve done product training.

8. YOU CAN MAKE AN EXTRA $100!!!! That’s right! If you agree to try doing your very first ever electronic application for an index annuity, we will GIVE you an extra $100!

*** Offer good on only the very first ever app., and only good until 12/31/2024.

Surrender Periods Are Not A Negative

Every week I talk with an adviser who has to overcome a client objection about the surrender period in an index annuity. The client expresses concern that they might need the money earlier than 10 years from now, or that their other investments don’t have a time restriction period that contains penalties for early withdrawal, etc.

Here are the ways I overcome these types of objections or concerns…

1. First, no other assets in the world come with the sort of guarantees that annuities offer. The reason that annuities can offer a guaranteed minimum growth rate is because the carrier buys a bond that matures at the end of the surrender period that will provide the minimum guaranteed growth. So, if I put $400,000 into an annuity, the carrier has to buy a bond that will give me back my $400,000 PLUS a minimum guaranteed profit. So, if I decide to pull too much—or all—of the money out early, the carrier is forced to sell the bond before it matures—resulting in taking a loss because they have to sell an unmatured bond at the current market price. The surrender fees are in place so that the client and the carrier both share in the loss caused by selling the bond early—because it is the client’s decision to pull the funds before the bond matures.

2. Putting money into an annuity is not a race to the end of the surrender period! Annuities are long-term growth and/or income strategies—for that portion of funds the client cannot afford to lose to market downturns. Most annuities are held beyond the end of the surrender period—many for the life of the client. For most clients, the surrender period is totally irrelevant.

Just call us:

800-200-9194

‍~ Greg Skogsberg

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