Josh Ver Hoeve, VP of Annuity Sales
February is The Greatest Act of Love month, and we of course believe that life insurance could potentially be just that. Unfortunately, not all clients are the perfect life insurance prospect for one reason or another. We want to make sure you’re aware of an amazing income and legacy option on the annuity side. Take a closer look at the Athene BCA with Family Endowment Rider Max (FER MAX). Just recently they increased the guaranteed roll-up on the death benefit base to 4% compound, PLUS index credits.
This means if you earn 0% in a given year, you will still get 4% credited to your death benefit base. But let’s just say that you earn 3% on average in index credits on the BCA with FER MAX, this essentially means you have a death benefit base growing at 7% compound! Better yet, this growth continues until age 85. This is perhaps the most attractive wealth transfer annuity in the market.
This doesn’t just work well as a death benefit product, but also as an income product – especially for qualified money. This is because when you take a withdrawal from this contract with the FER MAX rider, the death benefit base reduces DOLLAR FOR DOLLAR up to a 5% withdrawal. Take a look at a case study here. You will notice in the brochure the example shows the “FER MAX WITH BONUS” which also gives a 10% bump up front on the death benefit base. The total fee for the FER MAX with bonus is 0.85%/year or without the bonus it is 0.50%/year. What do you think about that income and the death benefit at life expectancy? Not so bad!
Even better, Athene does beneficiary IRAs. Not only do they do them, but they illustrate them. We will talk more about this transition from Athene BCA with FER MAX to their inherited IRA examples in coming months.
Talk about an act of love! You could potentially reposition qualified dollars, pull required minimum distributions from it, and still have a remaining amount of money that will be passed on to loved ones.
Contact our team today and we can run any of these scenarios for your client!
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