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In Reply to: JAX -new thread posted by eric on December 09, 2002 at 14:47:55:
: Jax, lets start a new thread. I will post UNDER your responses to keep it mor clear and linear.
: Eric
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Jax,
VA's are tricky as to whom you sell them to and why.
If the client wants the death benefit, why not Life Insurance? You can leverage assets instantly, and they go tax-free to heirs instead of in a VA. Fund a SPIA, and use the payments to fund the Life policy...(and you get paid twice :)
The death benefit isnt very helpful if you cant lock in gains with a step up rider, and those add expense, and cut off at certain ages. Also, lets remember, you have to DIE to take advantage of a death benefit. Living benefits can help there, but again...more expense.
Annuitization should NOT be an option...there is no flexibilty after you make that irrevocable decision. If the client wants income...what about Bonds? Tak Free Munis?
I sell VA's for their flexibility. The client can keep contributing tax deferred, but can be in or out of the market in a phone call.
Eric