Many of the pension sales with this tool. Most of our competitors hammer us and our outlook on the surrender penalties in annuities.
7 years, 10 years, 17 years - YIKES!
I see it differently. I love surrender penalties, because they provide me with many prospects and customers. How can this be?
It is the exclusion ratio. The exclusion of pension money more sales made for me that all I can ever imagine. The exclusion ratio is an advantage that weall agencies should ensure that our customers and prospects are known. Think of it like this:
If you convert accumulated funds into an annuity to an income stream you can access the exclusion ratio. The exclusion ratio is the percentage of income that is exempt from tax liability.
I like this example
• A $ 50,000 deposit on a value of 100,000 U.S. dollars increased.
If the pensioner does not accept funds for this reason, it is 100% taxable at ordinary income tax.
In ourExample, let say that pension recipients 10 years and we elect payout round the calculations for reasons of illustration.
• U.S. $ 100,000 is an annual payment of 10,000 U.S. dollars for 10 years.
• $ 5000 base and not taxable, $ 5,000 interest and taxation.
The $ 5,000 is based on the exclusion ratio.
Because we have the exclusion of money we can "spread" the tax on the selected dates achieved in our example 10years. This means that only 50% of the income received is taxable. By spreading out the payment we have spread out the tax liability!
An annual payment of $10,000 will only have 50% tax liability. Mrs. Prospect, this allows you to completely manage your annual tax liability and to take advantage of the “Exclusion Ratio.”
How about selling the exclusion ratio to the client for the beneficiary?
Mrs. Prospect did you know that when your daughter receives these funds as your Recipient can also access the exclusion ratio? "
Your recipient can accept the funding, which over time and spread the tax liability on the payment period.
If a customer asks me about the surrender time I always say:
"Mrs. Prospect, you can not enjoy the benefits of this contract, if you can keep the insurance on your funds. There are many benefits that you enjoy this product, have you ever been excluded from the money?"
Iuse the power of the contract and the exclusion ratio to explain the need for surrender period. Easy to explain and makes for very happy clients. This is especially good when someone comes to me with an existing annuity. Often times they are not happy and did not understand the time period for the surrender penalties. I would say this..
“Mrs. Prospect, unfortunately your agent did not really understand your contract well enough. It is really not his fault; he probably did not have access to the training that I have had. Let me explain a terrific benefit of your contract, the exclusion ratio.”
Once I am able to explain this powerful benefit it is easy to sell another annuity to her. The benefits of the contact sell the annuity for me.
