These are the settlement options to provide an income which cannot be out-lived. Various studies have concluded that what seniors fear most is running out of money after retirement. You have an excellent opportunity to be of service to your clients by increasing their lifetime monthly income. Since the SPIA field is so competitive, you can almost always obtain a quote that will provide more income than what the policyholder would receive from the annuitization factors contained in the existing policy or annuity. A simple 1035 exchange will both increase your client s income substantially and earn you a generous commission.
Retirees are also a good source for referrals, so be sure to ask.
Structured Settlements . In 1979 Congress passed the Periodic Payments Act, a law which states that a stream of annuity payments which meet the specifications listed in Section 104 A2 of the Internal Revenue Code is not considered income but is rather viewed as a return of the plaintiff s loss . In order to meet this definition and receive favorable tax treatment, the structured settlement must be purchased and owned by the defendant, with the plaintiff not having anything to do with the annuity except being the one receiving the payments. Often, the attorneys want their fees structured, also. The usual request is to pay out their fees over a period of several years.