Case Consulting - Protect Against the Unexpected

By Brian Holland, Vice President, Annuity Sales

After working all his life to save, and only five years retirement this client experienced what so many others have. Too much of their money exposed in the market. As a result of the crashing economy in 2007 and 2008, he lost a large portion of his retirement savings. Frustrated with this and the fact he lost so much from his “hard earned” and “hard saved” retirement assets he had sacrificed to save, he decided to watch his accounts very closely and do everything possible to grow it back to where it was before the losses, then put it someplace where principle and earnings are protected from future losses.

The Facts

• Married male upper 50’s
• Qualified funds to ‘roll-over’ from a brokerage account
• Had experienced heavy losses in his retirement account due to market conditions

The Goal

Find a safe money alternative to protect his principle and earnings from future losses while offering a competitive return.

Course of Action

After looking into the “safe money” alternatives and discussing with a personal friend who is a registered representative and a licensed insurance professional, the client chose a Fixed Indexed Annuity* with an income rider as the right product for his savings. He needed principle and future gains protection, full value of the monies passed directly to his wife upon his death, and he required access to the monies should an unexpected expense arise. The 10% free withdrawal provision was acceptable, but he really appreciated the accumulating free partial withdrawal up to 50% this particular product offered as an excellent upgrade. Finally, he needed the funds where he could realize competitive future growth. Being able to put a check mark after the client’s needs for principle protection, competitive future returns, liquidity, and reassurance made closing the sale that much easier for the agent. The client knew he had an income stream he couldn’t outlive, and the savings he worked so hard for was now secure from future losses.

The Result

For the client: Once the client completed the paperwork to move his funds from his brokerage account, he had a policy back in his hands before he knew it.

For the Agent:

 

FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 10879-2010/1/27

*Product mentioned is National Western Life’s Ultra Classic with Income Outlook benefit rider. Annuities are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity. Annuities contain limitations including potential withdrawal charges and fees which may affect contract values. Carefully consider the risks, expenses, potential loss of principal and clients' individual objectives before reallocating existing monies into these products.