Three Questions for Next Annuity Sale

Episode Summary

Joel Flores recently sat down with Ken Hurley, an annuity expert from OneAmerica, for an insightful discussion on leveraging annuities to cover long-term care costs. They covered several innovative strategies for getting more benefits from annuity products clients may already own.

The discussion began with Ken asking clients about any existing annuities and whether they had existing long-term care plans in place. He shared some troubling statistics - only around 10% of Americans have traditional long-term care insurance. Most people are unprepared for these potentially catastrophic late-in-life costs.

The good news is that annuities can help fill this gap in coverage. Certain annuity products allow clients to access any gains tax-free if used for long-term care services. This creates a pool of money outside regular retirement savings to pay for in-home care, assisted living, nursing homes, and more.

One such product is OneAmerica's Annuity Care Two. This provides 24 months of base benefits for singles or 30 months for couples. A major advantage is that an eligible spouse can be added during a 1035 tax-free exchange to gain additional benefits.

Ken walked through case studies of individuals aged 65 and 81 who optimized their existing annuities through tax-free transfers into Annuity Care. This unlocked long-term care benefits they previously didn't have access to.

For those who don't qualify for long-term care insurance due to health conditions, annuities can provide an alternative. The underwriting requirements are much more relaxed compared to traditional policies.

Consolidating multiple annuities from various carriers into one contract is another smart strategy. This allows clients to maximize benefits under a single annuity, while producers still earn commissions on the transfers. It's a win-win scenario.

Ken emphasized the importance of having conversations with clients about reviewing their annuities and long-term care needs. Even small optimizations can make a big difference down the road. Joel also asked Ken to discuss OneAmerica's white glove service if a claim arises, with a single point person handling everything.

In summary, the discussion provided extremely valuable insights into leveraging annuities in new ways to cover retirement risks. A little proactive planning today can unlock tangible benefits in the future.


(0:00:05) - The Broker Link podcast features a seminar on annuities from Joel Flores
(0:00:45) - Broker Link podcast features experts on insurance and annuities
(0:01:35) - Wise: The penetration of annuity products is about 16%
(0:04:31) - The Pension Protection Act allows for certain annuities for long-term care
(0:10:06) - Any client with an existing annuity not earmarked for income is worth looking at
(0:17:31) - Client unwilling to or unable to generate income from COB but wants lifetime coverage
(0:23:16) - There's no paramedical exam on annuity-based LTC product
(0:25:28) - We can make your spouse an eligible person on the policy
(0:26:19) - Let's say you have a client with a very large annuity
(0:32:59) - The most important thing you need to do is start having conversations with your clients
(0:35:17) - Joel, can you expand on the one America concierge service
(0:38:51) - What happens in the case of the death of the annuitant to the remaining monthly benefits

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