10 Important Insurance leads-Annuity leads Marketing Tips

Each of the following Ten Insurance leads-Annuity leads Marketing Tips is based on a highly effective - but often overlooked marketing tactic. How many are you using? How many have you overlooked?

Tip 1: Insulate yourself against the impact of change by increasing the number of Insurance products and services you offer ...and by using a variety of different marketing methods. For instance, you can use a postcard mailing to Senior Citizens from age 62 to 78 and income over $40,000. Every three weeks you would drip on them with another postcard. Also, you could do a quarterly newsletter. I like our "World Smallest Newsletter?" on a over sized postcard. Only a small portion of your total business will be affected if the sales of one product or marketing spoke on your marketing wheel declines or the response to one marketing method drops.

Tip 2: Insurance Clients are prospects too. Stay in contact with them. Find or develop other products or services you can offer them. It's easier to make a sale to a previous customer than to someone who never bought from you. Here's the ratio of marketing you should use. Front end marketing should be 25%. That's use postcards, letters, flyers and emotional type ads to generate business. You should be getting 25% of your business from "Critical Mass." That's by working your clients to offer more services and products to on annual review. Another 50% should come from using a systematic process of getting your clients to have their friends calling you. We go in depth on systems you can use to have a bundle of referrals.

Tip 3: Avoid making any claim that sounds exaggerated ...even if it is true. A bold claim creates doubt in your prospect's mind and jeopardizes the sale. Reduce any bold claims to a more believable level. Use third party articles to help make your claims hit home.

Tip 4: Express numerical claims as odd numbers with fractions or decimals. For example, "Our clients save 17.7 percent" sounds more believable than "Our clients save 20 percent" ...even if 20 percent is the accurate number.

Tip 5: Set up a Insurance leads-Annuity leads automatic mailing system that you can use weekly that will keep you in a steady flow of leads. We have developed a brand new "Ultimate Postcard System" that you can use that will do all your postcard mailings that will only take about 15 minutes a week. Thing of your business as a wagon wheel with spokes and the hub is the base. If you only have two spokes and one breaks your in trouble. However if you have at least 10 spokes and one breaks it won't be a problem. That's what you want your Insurance marketing business to have. You need to have systems in place for building referrals, current clients, center of influences, postcards, telemarketing, newspaper ads, etc. I highly recommend you start out 2005 with mailing out at least 1,000 postcards per week using our "3-Step Postcard Systems.?" www.ultimateinsurancesystem.com/specialreport.htm Tip 6: Develop a series of 4 or 5 different special Insurance leads-Annuity leads postcards. Use them one at a time on a quality lists. I also like to use income levels over $50,000. Our test show that 80% of these people have CD money. Continuously recycle through the same series of dripping of postcards. This enables you to keep using special postcards to generate sales without taking time to develop new ones.

Tip 7: If you're attracting many prospects who really don't have (or can't get) the money to buy your product or service ...you need to change your market. Target a market where prospects have an intense desire for the benefits produced by your product or service - AND the money to buy it.

Tip 8: Set yourself apart from competitors by offering an exclusive benefit your competitors cannot copy ...or one they're not willing to copy. One agent I know has positioned himself in the following way. He specialists in showing people how to have retirement money available from the 11 to the 20 year. People are out living their money.

Tip 9: Advertising Insurance leads-Annuity leads copy produces the biggest response when each reader can believe the message was written specifically for him or her. As you write any sales message, visualize you're writing to one person instead of to a large group of people. This will help you write in a less formal and more personal style. Personalize envelopes with head addressed and a real live stamp.

Tip 10: Most insurance sales are not made on the first contact. Develop a method to capture and save the names and contact information of prospects who don't buy from you. Follow up periodically. A little gentle coaching will eventually convert many of them into buyers. Develop a newsletter that you can send out on a monthly basis. It can only be a postcard or a 8.5" X 11" letter.

Each of these 10 Insurance leads-Annuity leads marketing tips implements a simple but highly effective marketing tactic. Take action now to apply those you overlooked. You'll be surprised by how much business it produces for you. Check out our "Lazy Agents Marketing System." I hope you enjoyed this article and you will apply some of the principals discussed. If you need marketing help just go to the following website Http://www.ultimateinsurancesystem.com/specialreport.com Yours for your success, Russ Jones Creator of the "3-Step Postcard System." www.Ultimateinsurancesystem.com

Creator of "The 3 Step Postcard System" Developer of "Annuity Pro Lead Capture Web Page System" http://www.pmrsystem.com

Radio Talk Show Annuity Selling System

Pre-selling skills are as important as closing skills and more important than presentation skills. The more you pre-sell, the less you have to sell during the face-to-face phase. The more your prospects perceive you as the expert, the less you have to convince them you are.

Our new Radio Talk Show Annuity Selling System engages the power of perception in your prospects. It is not actually a selling system. It?s a pre-selling system. Pre-selling is the easiest, most time- and cost-effective part of the sales process.

Here's an example right out of history. In 218 B.C. when Hannibal led his army of 38,000 foot soldiers, 8,000 cavalry, and 37 war elephants across the Alps to do battle with the mighty Roman army, the march itself, not the ensuing battles won or lost, established him as the greatest military strategist in history. So admired and feared was Hannibal that, by reputation alone, many battles along his historic march to northern Italy were won without a single sword unsheathed, without a drop of blood shed.

This story demonstrates the awesome power of perception. This strategy applied to selling annuities will make you the undisputed expert in your field.

If you were your prospect, would you rather sit down with a ?nobody special? insurance agent or a well-known expert on the subject of financial retirement solutions, someone you listen to on the radio? You don't get a second chance to make a first impression.

Look at the world from your prospect?s point of view. Who would you rather discuss your retirement nest egg with, (a) an insurance agent who contacts you through telemarketing or direct mail, asking for an appointment, or (b) a prominent expert with his or her own radio talk show covering subjects like, How to Stop The IRS From Plundering Your Social Security, or Three Easy Steps to a Guaranteed Income For Life, or Why Your IRA Is a Ticking Tax Time Bomb and How To Defuse It.

An Annuity Selling System That Makes You The Expert

It?s a fact that 96% of the U.S. population listens to the radio at least once a week and 75% listen EVERY DAY. This is more than any other medium. Listeners pay more attention to guest speakers than they do to commercials. Which would you rather listen to, a commercial, or a guest with an amazing story to tell, a guest who can make you laugh, teach you something new, save you money, save you time, open up a controversial topic for you to argue about?

Notice I did not suggest a radio show guest who talks about ?why you should buy fixed annuities,? or even ?what an annuity is.? Your topic is your hook. Your hook needs to pull listeners in with the strength of a black hole.

Once your listeners tune in, you don?t want them to feel tricked because you launched into a sales pitch for a product. You want to let your personality radiate, to reveal the three-dimensional human being you are, and to give genuine take-home value by way of solutions to their financial problems.

Remember, nobody buys annuities; they have to be sold. Nobody wants you to sell them a product, but everybody wants you to help them discover a solution. If you can learn how to do this in a radio talk show format, reaching tens of thousands of listeners at a time, you will truly position yourself as the popular, trusted expert while propelling your insurance practice to record heights. You will have your own very personal pre-selling annuity selling system.

But who has time to script a compelling radio show? Should you just wing it and hope for the best? How do you tie your theme to a hot topic that people will clamor to listen to? Should you go live or pre-recorded? Do you take calls, give away freebies, go solo or be interviewed by a host? Yikes! Too many questions and not enough answers!

Until Now

Now, a limited number of annuity agents have a rare opportunity to participate in "Safe Money Secrets," our turnkey Radio Talk Show Annuity Selling System, with exclusive broadcast rights in protected territories.

If you are a licensed life insurance agent not currently contracted through Life Sales and wish to begin or advance your career selling fixed annuities, you may qualify for our Radio Talk Show Annuity Selling System. Come onboard with two or more of our carriers ? Allianz, ING, Sun Life Financial, or American Equity ? and receive 200 leads as a signing bonus. Then with your first 3000 QPCs (roughly $40,000 in paid business depending on carrier and product) within three months of coming onboard, you?ll be interviewed as a guest expert on "Safe Money Secrets" and receive your first half-hour pre-recorded radio show with exclusive broadcast rights, ready for airing in your local market.

We provide you with a script of all the questions, coaching on all the answers, anecdotes, segues, ways to make the phone ring and generate warm, pre-sold prospects. It's all done over the phone. I call you as host, interviewer and show producer. You are the exclusive guest expert in your marketing area. You speak from the comfort of your office or home with all your notes at hand, in your pajamas if you like.

I use professional recording and editing hardware and software to make you sound like a professional radio talk show star. I burn a broadcast-quality CD-ROM of your show, which you take to your local stations and shop the best demographics, listening audience, frequency, time slot, and rates.

Simply click on the link below to contact me. Then, as Charles Osgood says, "I'll see you on the radio."

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide. He is coach, mentor and motivator to over 700 general agents in his insurance marketing organization, InsuranStar Marketing.

Rescuing Your Underperforming Annuity Account

It was only a few years ago that interest rates plunged to historic lows. Conservative investors who needed guaranteed income and preservation of principal were in a bind. In many cases, returns at the bank were below two percent and fixed annuity accounts yielded only marginally better. Many of these cautious investors purchased fixed annuities rather than bank instruments in order to capture higher returns.

How times have changed. The United States economy improved significantly. Inflation pressure grew, and the Federal Reserve began to ratchet up interest rates while treasury yields increased in kind. While much of this was good news, it created problems for the annuity purchaser from just a few years ago.

Concerns with Older Annuity Accounts

If you invested in a traditional fixed annuity account during these low yielding years, you may find yourself in a dilemma. The problem: many of these accounts have fallen to their guaranteed minimum yields. Currently, they might only offer a paltry return between 2 and 3.5 percent. There are several reasons for this decline. To begin with, many annuity accounts have a first year bonus that will not be paid in subsequent years. In addition, these accounts often provide a floating rate of return. Their returns are not locked in. A floating rate annuity is quick to go down in years where yields are decreasing, but slow to come back up when yields in the treasury market increase. In essence, if you purchased an annuity in the lean years, you may have locked in poor yields for the duration of your account.

There are other issues as well. If your annuity has not reached maturity, you will have to pay surrender penalties if you cash in the account early. In addition, if you purchased a non-qualified annuity account, you may have accumulated tax deferred interest. Should you transfer your annuity to anything another than another annuity account, you could have income tax to pay. Taxes and penalties will quickly lower your account value upon early surrender.

How to Improve Your Fixed Annuity Returns

Rest assured ─ this is not a story of doom and gloom. The fix to this problem is simple. You simply exchange your old annuity for a new account. Rates have increased dramatically over the last three years, and newer annuities can lock in much higher yields. Furthermore, it may be a wise decision to lock in rates with a guaranteed fixed yield as oppose to a floating rate of return.

Unless your account is very new, the higher guaranteed yields can more than make up for any surrender penalties your may have. A sizeable account can accumulate thousands of additional dollars by making this change. (It is important to note that many economic pundits are already predicting that the Federal Reserve Board will begin to lower rates in 2007. This will most certainly force treasury markets and annuity yields lower for those who have not locked in higher rates.)

Income Taxes on Tax Deferred Interest ─ 1035 Exchange

Additionally, if income taxes are a concern, you should understand that taxes are not due if you transfer your old non-qualified annuity to a new annuity account. This is why owners simply transfer from one annuity to another in what the I.R.S. has deemed a 1035 tax-free exchange. Income taxes will only be due if and when you decide to take out your interest. If yours is a retirement account (also called a qualified account) you can simply perform a rollover. If done properly, (with the help of an experienced agent and/or accountant), a qualified rollover is not a taxable event either.

In summary, no longer do you need to dread your quarterly annuity statements. There are several reputable insurance companies providing very reasonable guaranteed returns. These products will provide you with higher yields, potentially shorter durations, liquidity and peace of mind. An annuity rollover or 1035 exchange can be a wise investment choice.

A.M. Hyers has been working in the insurance and investment industry for nearly ten years. He owns and operates Ohio Insurance Plan, an independent insurance agency doing business in Ohio, Missouri and Georgia.

His agency offers products to individuals, families and any size employee group. They use the leading national insurance carriers to offer quotes, illustrations and relevant information on life insurance, health insurance and HSA accounts. They also offer disability and long term care insurance as well as annuity policies, Medicare supplement plans and Medicare Part D coverage.

Visit them at:
http://www.ohioinsureplan.com
Learn more about fixed annuity products
Current annuity rates

Ramp Up Annuity Sales Using Secret Tool

Lots of annuity sales with this Tool. Most of our competitors hammer us and our prospects about the surrender penalties in annuities.

7 years, 10 years, 17 years - YIKES!

I look at it differently. I love surrender penalties because they provide me with lots of future prospects and clients. How can that be?

It is the exclusion ratio. The exclusion ratio has made more annuity sales for me that anything I can ever think of. The exclusion ratio is a benefit we should all make certain our clients and prospects are aware of. Explain it this way:

If you convert accumulated funds in an annuity to an income stream you can access the exclusion ratio. The exclusion ratio is the percentage of income that is excluded from tax liability.

I like this example

? A $50,000 deposit has grown to a value of $100,000.

If the annuitant takes any funds from this account it is 100% taxable at ordinary income tax rates.

In our example let?s pretend that the annuitant selects a 10 year payout and we will round off the calculations for the sake of illustration.

? $100,000 will provide an annual payment of $10,000 for 10 years.
? $5,000 basis and not taxable, $5,000 interest and taxable.

The $5,000 basis is the exclusion ratio.

Because we have accessed the exclusion ratio we can ?spread out? the tax liability over the selected time period which in our example is 10 years. This means that only 50% of the income received is taxable. By spreading out the payment we have spread out the tax liability!

An annual payment of $10,000 will only have 50% tax liability. Mrs. Prospect, this allows you to completely manage your annual tax liability and to take advantage of the ?Exclusion Ratio.? How about selling the exclusion ratio to the client for the beneficiary?

Mrs. Prospect did you know that when your daughter receives these funds as your beneficiary she can also access the exclusion ratio??

Your beneficiary can accept the funds out over a fixed period of time and spread the tax liability over the payout period.

When a prospect asks me about surrender period I always say this:

?Mrs. Prospect, you cannot enjoy the benefits of this contract unless you allow the insurance company to hold your funds. There are many benefits you can enjoy with this product, have you ever heard of the exclusion ratio??

I use the power of the contract and the exclusion ratio to explain the need for surrender period. Easy to explain and makes for very happy clients. This is especially good when someone comes to me with an existing annuity. Often times they are not happy and did not understand the time period for the surrender penalties. I would say this..

?Mrs. Prospect, unfortunately your agent did not really understand your contract well enough. It is really not his fault; he probably did not have access to the training that I have had. Let me explain a terrific benefit of your contract, the exclusion ratio.?

Once I am able to explain this powerful benefit it is easy to sell another annuity to her. The benefits of the contact sell the annuity for me.

Bill Broich is a 30 year annuity salesman who helps agents increase their annuity sales. Visit his website to learn more. Annuity.com.

Annuity Marketing By Radio

I know what you are thinking? I must be kidding - right?

Think about our target market. Who are they and how do they access their information? It is a statistic that only 7% of people over age 65 are online. That means that 93% of our target market is accessing information by other sources such as the newspaper, television and the RADIO!

How do you do it? There are many options available to you. Offer your services to the Saturday Morning local interest station. There are many of these and your cost will be zilch. They are always looking for guests and if you offer a newsworthy topic it is very easy to get yourself on the air and it will be a clever annuity marketing tactic.

A possible target may be, ?Uncover the facts about Long Term Care Insurance? or ?How to manage your IRA for maximum income.? There are so many topics available to you that a little imagination will leave you with endless possibilities.

How about pay to play? Easy to do and lots of sources. I like the idea of a Saturday Morning slot and if you can get it close to 10:00 it is perfect. Buy the air time for 30 minutes and talk about your list of topics. Have you ever thought about doing an annuity seminar on the radio? Just repeat the strong points of your seminar over the air and invite people to call in for questions.

Have the station capture the caller?s information like address and number.

Offer a booklet to mail out after the show. The callers are all solid prospects and because you are on the ?RADIO? you are a perceived expert!

Trade air time for commercials. This idea really works, offer the station an advertising commitment for air time. Trade $1,000 of commercials for the ? hour of air time.

What do you advertise?

Your radio program! How about peripheral annuity marketing? Ask the station for permission to use their name on your web site or your printed materials. Have fun with this and be informal while at the same time being the local ?EXPERT.?

Your radio show can be cross marketed to your existing client base and to all new prospects you meet. ?Oh, you are the radio guy.? Instant credibility!

There are numerous ways to find annuity leads, be different and be creative and your annuity marketing results will explode.

Bill Broich is a 30 year annuity salesman who helps agents ramp up their annuity marketing efforts. Visit his website to learn more. Annuity.com

Focusing on Annuity Benefits to Close Annuity Leads

Annuities offer many unique benefits for senior adults and by focusing on these benefits you can close your annuity leads much more easily. More precisely, if you stay away from focusing on the yield of interest credited and refocus on the true and unique benefits available with annuities you will increase production dramatically. So what are the benefits?

The first benefit is ?Tax Deferral.? You can actually pay fewer income taxes by placing your warehoused money in an annuity. With an annuity you only pay taxes when you touch the funds, in other words, you are in complete control of your tax liability.

The second benefit is ?Triple Compounding? and is the result of tax deferral. If you defer your taxes then you earn interest in three separate areas.

? You earn compounded interest on your invested funds.
? You earn compounded interest on your accumulated interest.
? You earn compounded interest on the tax liability of the money you would have sent to the government.

The third benefit is ?Tax Advantage?. If you own an IRA and you are 70 ? years of age you must begin withdrawal of your funds under the Required Minimum Distribution Rules. Annuities enjoy the same tax deferred status of an IRA but are EXEMPT of the required minimum distribution rule. No FORCE OUT at age 70 ? or at any age!

The fourth benefit is ?Access? to your funds and withdrawal. Many competitors such as banks and stock brokers use the withdrawal provision as a negative. In actuality it is a complete positive. Here is how you remove funds from an annuity.

? Access of 10% of your account value annually.
? Monthly earned interest, you are allowed to withdraw the earned interest on a monthly basis
? Income for any time period. At anytime you are allowed to convert your ?pile? of money to an income stream for any time period you choose.
? Beneficiary, your beneficiary is entitled to 100% of your funds at anytime.

The fifth benefit is ?Growth.? Your account is guaranteed to only grow. Your funds are fully guaranteed to increase and never decrease! All annuity contracts have a minimum guaranteed interest that will be credited regardless of what happens to our economy.

The sixth benefit is ?Avoiding Probate.? If an annuity has a specified beneficiary the funds from an annuity avoid probate and are paid directly to the beneficiary without any delay or expense. This allows the beneficiary to avoid legal expense and time delays in receiving the funds.

Annuities can be wonderful products when used for the benefits they contain. Less tax liability, liquidity, guaranteed growth and guaranteed income are all benefits that can be enjoyed with annuities. Agents should not focus on the rate of return and simply explain the unique benefits. Follow this one simple tip with your annuity leads and you will close more sales.

Bill Broich is a 30 year annuity salesman who helps agents find quality annuity leads and close more business. Visit his website to learn more. Annuity.com

News Article Expert Annuity Lead Program

Are you an annuity agent looking for a surefire lead program? Try writing news articles for your local newspaper. Neighborhood newspapers gladly print compelling copy of interest to readers. You also position yourself as the expert in your field and, being perceived as the expert, your sale is practically in the bag even before you meet your prospect.

Successful annuity agents are those who position themselves as the "expert" in their field. An expert is held in higher regard than a salesperson. An expert substitutes the sales presentation for a polished dialog of probing, educated questions that expose symptoms of financial disorder. After proper diagnosis, an expert does not attempt a close. An expert simply prescribes a cure, finishes up the paperwork and moves on to the next patient or client, the unspoken question being, "Do you want to stay sick or do you want to get well?"

Experts are experts because their reputation precedes them. It's all in the setup. There is no reality, only perception. If the prospect first hears about you by reading your newspaper article, you are already the expert. People want to be clients of experts for many reasons, including bragging rights. Sales transactions are pretty much understood even before appointments are set. Your starting point in the sales process is leaps and bounds ahead of the competition. Your annuity lead program is uniquely personal. And one of the most powerful ways of becoming the expert while generating referral-quality leads is through systematically submitting topical, high-content news articles for publication in hometown Senior newspapers.

Newspapers hunger for news and will gladly print informative content, especially from a local expert whose specialty is of interest to their readers. Articles of 400 and 600 words in length should be submitted periodically, should be informational (not a sales pitch) and filled with take-home value. The author's name, photo and contact information is included in case readers wish to pursue additional information or contact the expert about specific concerns. There is no cleaner annuity lead program, no higher quality lead than a news article inquiry.

Unfortunately, most successful annuity advisors don't have the time to write compelling news copy. I've known successful agents barely capable of constructing one-word sentences. But now, a limited number of agents have the opportunity to participate in our News Article Expert Annuity Lead Program.

In the time-honored tradition of ghostwriting, I provide qualifying agents with a new article each month, packed with vital information on Senior financial issues. Territories are exclusive to avoid overlapping geography, and I include my author's release of copyright allowing you to list your name as author, your photo and contact information.

If you are a licensed life insurance agent not currently contracted through Life Sales and wish to begin or advance your career selling fixed annuities, our News Article Expert Annuity Lead Program is for you. Come onboard with two or more of our carriers - Allianz, ING, Sun Life Financial, or American Equity - and receive 200 leads as a signing bonus. Then with your first 2000 QPCs (roughly $40,000 in paid business depending on carrier and product) in any one month, within two months of coming onboard, you'll receive your free six-month subscription to our News Article Expert Annuity Lead Program. Remember, territories are exclusive and you will receive my ghostwriter release of copyright.

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide

3 Reasons To Sell Your Annuity Now

Selling an annuity can be a difficult decision for some people. If that?s you then I want to let you know up front that selling your annuity is only something you can determine whether or not the time is right for you.

If you are thinking about selling your annuity then I want to give you 3 reasons why you might consider doing so now.

Sell Annuity Reason #1 ? More Flexibility

While having some scheduled payments can be great, some annuities do not offer the flexibility one might need. With structured settlements and payments, this can work great for some and be a terrible situation for others.

You?ll need to decide if your current situation calls for more control over your income. If so then you might want to consider selling your annuity now.

Sell Annuity Reason #2 ? Better Investment Vehicle This reason is one of my favorites. The annuity might pay a nice amount over a certain time period, but you might have been presented with a better opportunity to leverage your funds.

Only you and your advisor can determine that, but if you have a better situation in hand that will allow you to increase your investment at a much quicker time rate then you should definitely consider selling your annuity now to cash in on the opportunity.

Sell Annuity Reason #3 ? Liquidity

Okay, this is a no-brainer. You may want access to your funds, well?just because.

There?s no rhyme or reason, you just want to have more control over your money and faster access to it. If that?s the case then don?t feel bad. Having the money available to do whatever you wish with it can be a little bit more comforting than knowing you have to wait for it.

In closing I would recommend that you talk with an advisor to find out the best situation for you and which company you should go with to sell your annuity for one lump sum.

There are some companies that deal specifically with structured settlement companies who can give you great service and make the process easy as pie.

You?ll definitely want to go with a company like the one I mentioned above.

James Carter writes helpful information on how to Sell Your Annuity Now! To get more FREE information go to: http://www.my-search-help.com/Settlement/index2.htm

Buyer Of Structured Annuity Settlement - How To Find the Structured Annuity Buyer That Suits You

Annuities are important and valuable policies for many senior citizens in the USA. Sometimes, however, any one of us may have need to plan for the future differently. Our plans may change, we may require cash fast and decide to sell the annuity or part of it for a large lump of cash.

Annuities are usually paid annually in small amounts and for some people, it may not be enough to support their lifestyle. Many people need cash today to invest in their own business even after retirement, some may have loans to pay off, or many people with good financial standing would rather have a large sum in advance, than having small payments deposited annually. Selling your annuity may give you more leverage for your "future" money, today.

It must be noted that selling your annuity, may have tax implications so it would be wise to have some idea of your situation.

There are a few reputable financial companies on the market that will work with you and based on your situation, provide you with the plan that may suit you best.

Even if you have already decided to sell your annuity, it would be extremely wise to shop around. This point cannot be stressed enough, as many people accept the first offer they come across and think this is the best they can do. Because of the years involved, even a small percentage variation in time periods can mean difference in hundreds of dollars in, or out of your pocket.

Use the internet, obtain as many quotes as you can, and make informed decisions. In addition you will gain more knowledge in the process.

If you are serious about your financial future than be sure to read "Buyers of Annuity Structured Settlement" article at http://lump-sum-structured-settlement.savehog.com Where you will find variety of valuable information including links to free instant online quote from annuity buyers, as well as host of online resources and calculators.

LeadZILLA: Best Annuity Lead Program?

LeadZILLA, a direct mail annuity lead program, won the Readers? Choice Award in a survey of independent annuity producers polled by Senior Market Advisor Magazine. But after thoroughly testing the system myself, do I see LeadZILLA as king of the jungle or a big bag of gas? I have invested thousands of my own dollars into LeadZILLA to generate leads for my own general agents to use, and I?ve learned a few lessons along the way.

The numbers speak for themselves. My first mail drop was on September 23, 2005 and, as of this writing, I have used LeadZILLA continuously for the past fourteen months. I have mailed out 44,800 pieces in 224 drops and received 1,295 direct response cards back in the mail. This is a response rate of 2.89% and an average of 5.77 lead cards for each 200 piece drop.

The lead system's proprietor boasts an average of 6 lead cards returned for every 200-piece drop. My average of 5.77 cards is close enough that I?m not going to snivel over the .23% difference. As we in the insurance industry know, pools of statistics paint with a broad brush. I?ve seen return rates ranging from zero cards back to 20 back, each from 200 pieces mailed out. Individual return rates are one of those mysteries of life, but I always advise my agents to select zip codes on the outskirts of town and away from affluent neighborhoods.

The good news is that LeadZILLA is part of a Marketing Allowance Program (MAP), which makes it free with production. For every (roughly) $40,000 in annuity premium issued by one of four carriers ? Allianz, American Equity, Sun Life Financial, and ING ? the agent receives a 200-piece mail drop. On average, each piece of business leads to six additional prospects, which in turn leads to more business and more prospects in a self-perpetuating cycle.

But this cycle is quickly broken with this or any lead system when the agent tries to take the lazy way out. Do not (I repeat, DO NOT!) destroy a perfectly good direct response lead by picking up the telephone and becoming a cold-call telemarketer. You?ll be lucky to set an appointment with one in six prospects, and you?ll quickly join the ranks of the 90% of insurance agents who fail. Instead, route out your cards, get in your car and spend an afternoon using the Drop-By System.

Here are the steps to remember with the Drop-By System. Park your car directly in front of your prospect?s home or in their driveway. Leave the engine running and the door open. Get out of your car, turn and wave at the front window as if someone saw you drive up. (In case someone did see you drive up, they?re busted!) Knock on the door and stand sideways a few feet away. When your prospect comes to the door, glance at your watch and say, ?Hello, may I speak with Mr./Mrs. (Name on card)? I?m (Your name) and I only have a minute, but I was passing by your street and thought I might stop by to set up an appointment to go over this information you requested (show them the lead card they filled out and signed). Is Thursday morning at 10 good, or is Friday morning at 9 better?? Let the conversation go where it will. Some of my biggest annuity sales started out discussing Mr. and Mrs. Prospect?s cat.

They can?t very well hang up on you. They can, however, see that you are a living human being with ?evidence? in your hand, a smile on your face, and a simple duty to fulfill their request for information. You?ll set appointments with four out of six prospects. What?s more, when you return for the appointment you won?t be a stranger. Odds are you?ll leave with deal in hand.

I have additional information on LeadZILLA and other annuity lead and insurance lead programs. Feel free to contact me. Direct mail lead generation is one of the best methods I have used in my decades of direct sales. Popular vote says LeadZILLA is the best. Who would argue with the king of the jungle?

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide. He is coach, mentor and motivator to over 700 general agents in his insurance marketing organization, InsuranStar Marketing. See also Insurance-Lead-Programs.com.

Structured Settlement Annuity Sale for Lump Sum - Should You Get Your Cash Now?

What If You Do Not Want to Wait for Your Structured Settlement Money?

When structured settlements are awarded from lawsuits such as product liability, personal injury, or accidents, in general an insurance company buys an annuity. This annuity pays a mixture of principal sum and an interest over an agreed period of time at a schedule that is agreed with the structured settlement payee. Having said that, the structured settlement recipients may be in a financial situation where the money is needed immediately and cannot wait for the cash to be paid in small sums. Fortunately, the structured settlements can be exchanged for a large lump sum payout for all or some of the recipients? future annuity payments. You can basically sell small part or your entire future entitlements to be paid over the years for a lump sum of cash now.

Should You Sell Your Structured Settlement or Annuity Now for Cash?

A Structured Settlement is designed for paying out for the financial obligations over a period of time, but what if you need your money today? Selling your structured settlement or your annuity for cash can be a lifesaver in some situations and fortunately, there are a few reputable companies that can pay you a large lump sum in exchange for your future payments from structured settlement. However, how do you know if selling your annuity or structured payments is the best option for you? After all, every person's situation is different. If you are in debt or require cash immediately, it may be prudent to sell all or part of your entitlements. This can potentially save you hundreds, or thousands of dollars that you would otherwise have to pay in interest.

Whether you have already decided to sell your structured settlement or annuity for cash, do shop around for best deal! Getting a good deal when it comes to structured settlements or annuities does pay off. You may end-up with much more money in your pocket as few fractions of percentage can make a big difference over the years.

Go ahead and use the Internet for research on your structured settlement or annuity.
Rush over to the Structured Settlements vs. Lump Sum of Cash article at SaveHog.com lump-sum-structured-settlement.savehog.com section, where you will find a variety of valuable information about structured settlement and lump sum, as well as host of online resources, calculators and structured settlement companies that can provide you with a free quote on structured settlement lump sum.

Annuity FAQ: Answers To Some Basic Annuity Investing Questions

* How much should I invest in an annuity?

The amount of money that you invest in an annuity will depend largely on your capability to pay the premiums offered by the assurance company. Things to consider when putting money to an annuity include:

- Your probable financial needs

- Type of investment portfolio

- Alternatives available

The most important thing to consider is your financial needs, especially at times when you really need cash to finance something like the birth of a child delivery or an unforeseen accident or illness. However, you must also consider the regulations on withdrawal against the annuity, because it can be a bad scenario if you find yourself being served a penalty just because you withdrew large amounts from your annuity account when it was not permitted on the plan you purchased.

* What is a deferred annuity?

A deferred annuity pays out to investors interested in getting an income from an annuity, but who want the payments to begin some time in the future, usually at retirement. Or, they may want the insurance company to invest the money for a few years to increase the payments. A tax deferred annuity allows income tax to be deferred until the money is withdrawn, and you can contribute as much money yearly as you like.

* What is an immediate annuity?

An immediate annuity is an investment policy usually purchased from an insurance company. Immediate Annuities are sometimes known as Single Premium Immediate Annuities. Immediate annuities are commonly purchased with a lump sum and used as a retirement investment. In an immediate annuity, the investor begins to receive lump sum pay-outs anywhere from immediately to one year from the date of purchase. Generally, payments begin one month after investing in the annuity.

Immediate annuities can be fixed or variable. While a fixed immediate annuity payment depends on the amount you contributed, your age, as well as the interest rate at the time or purchase; a variable immediate annuity depends on the type of investment purchased.

There are a variety of different options available to you when purchasing an immediate annuity. You can decide whether you would like a set period of payments or a lifetime of payments. You can also decide on whether the payments are solely for the person who holds the policy or also for a secondary person, such as a spouse.

* What are the advantages of annuities?

There are three principal advantages to an annuity:

1. Tax-deferred accumulation. This allows you to set aside the funds that you pay into the annuity for as long as you want, without worrying about exceeding federal tax limits.

2. Flexibility. An annuity can offer you a variable or a fixed return, unencumbered by federal tax limitations.

3. Security. An annuity offers a fixed-income payout option which would grant an income that cannot be outlived.

* How will I receive my annuity payments?

There are several pay-out methods available when you begin receiving annuity payments. With some options, you or your beneficiaries can select how you want to be paid. The following are some of these:

You can get income for your entire lifetime even when the money in your annuity account has been used up. This is advantageous if you live to an advanced age because it will maximize the income that you will receive. However, there is a risk involved: when you die, all the money cannot be claimed, even by your assigned beneficiaries. If you die young, you simply lose this money.

Another is the joint and survivor annuity where it pays you during your lifetime, and after your death your beneficiary (usually your spouse) will also be paid during his or her lifetime.

You can also refund your annuity, meaning you're gaining income for life. However, when you die, the portion if the income payments that you have not collected will be the only amount that your beneficiary receives.

Alex Trenor is editor of Annuity Yes, the online guide to Annuities. He also writes Annuity FAQ's for PrettyGreatAnswers.com.

LeadZILLA Voted Best Annuity Lead Program

America's annuity agents have spoken. LeadZILLA, a direct mail annuity lead program offered by Life Sales, wins the Readers' Choice Award in a survey of independent annuity producers polled by Senior Market Advisor Magazine. The votes are in, but after mailing out 44,800 pieces in 224 separate drops, do I see LeadZILLA as king of the jungle or a big bag of gas?

No doubt I was thrilled to read about LeadZILLA taking top honors for best direct mail annuity lead program in the Senior Market Advisor Readers' Choice Awards. After all, I am a principal AFMO in the marketing organization, Life Sales, the lead program's proprietor. And knowing the votes were cast by independent annuity agents nationwide made the victory even sweeter. But having invested thousands of my own dollars into LeadZILLA to generate leads for my own general agents to use, I've learned a few lessons along the way.

The numbers speak for themselves. My first mail drop was on September 23, 2005 and, as of this writing, I have used LeadZILLA continuously for the past fourteen months. I have mailed out 44,800 pieces in 224 drops and received 1,295 direct response cards back in the mail. This is a response rate of 2.89% and an average of 5.77 lead cards for each 200 piece drop.

Life Sales boasts an average of 6 lead cards returned for every 200-piece drop. My average of 5.77 cards is close enough that I'm not going to whine over the .23% difference. As we in the insurance industry know, pools of statistics paint with a broad brush. I've seen return rates ranging from zero cards back to 20 back, each from 200 pieces mailed out. Individual return rates are one of those mysteries of life, but I always advise my agents to select zip codes on the outskirts of town and away from affluent neighborhoods.

The good news is that LeadZILLA is part of Life Sales' Marketing Allowance Program (MAP), which makes it free with production. For every (roughly) $40,000 in annuity premium issued by one of its four carriers - Allianz, American Equity, Sun Life Financial, and ING - Life Sales gives the agent a 200-piece mail drop. On average, each piece of business leads to six additional hot prospects, which in turn leads to more business and more prospects in a self-perpetuating cycle.

But this cycle is quickly broken when the agent tries to take the lazy way out. Do not (I repeat, DO NOT!) destroy a perfectly good direct response lead by picking up the telephone and becoming a cold-call telemarketer. You'll be lucky to set an appointment with one in six prospects, and you'll quickly join the ranks of the 90% of insurance agents who fail. Instead, route out your cards, get in your car and spend an afternoon using the Drop-By System.

Here are the steps to remember with the Drop-By System. Park your car directly in front of your prospect's home or in their driveway. Leave the engine running and the door open. Get out of your car, turn and wave at the front window as if someone saw you drive up. (In case someone <u>did</u> see you drive up, they're busted!) Knock on the door and stand sideways a few feet away. When your prospect comes to the door, glance at your watch and say, "Hello, may I speak with Mr./Mrs. (Name on card)? I'm (Your name) and I only have a minute, but I was passing by your street and thought I might stop by to set up an appointment to go over this information you requested (show them the lead card they filled out and signed). Is Thursday morning at 10 good, or is Friday morning at 9 better?" Let the conversation go where it will. Some of my biggest annuity sales started out discussing Mr. and Mrs. Prospect's cat.

They can't very well hang up on you. They can, however, see that you are a living human being with "evidence" in your hand, a smile on your face, and a simple duty to fulfill their request for information. You'll set appointments with four out of six prospects. What's more, when you return for the appointment you won't be a stranger. Odds are you'll leave with deal in hand.

Call me for more information. LeadZILLA is, after all, one of the best direct mail annuity lead programs I have used in my decades of direct sales. Popular vote says it's the best. Who would argue with the king of the jungle?

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide

Annuity Settlement Options: Annuitize or Lump Sum?

Annuity settlement options can be puzzling. Many people have purchased annuities of all types for the tax deferral feature. For many retirees the time has come to make the shift from accumulation to payout. Here are some considerations to help determine what?s best for you.

The most popular annuity settlement option is annuitization ? to take payments over a time frame that you select, which may include the rest of your life. When you annuitize, you receive payments (monthly, semi-annually, annually) in exchange for surrendering your annuity to the annuity insurance company. Your annuitization options usually include:

Lifetime Income

Period Certain

Period Certain Plus Life

Here is how Lifetime Income works. Let?s say you have $100,000 in an annuity and the insurance company calculates that, due to your age and gender, it will pay you $1,500 a month for as long as you live. You collect $1,500 the first month, $1,500 the next month, and $1,500 the following month. Then you get run over by a truck and die. You bet the insurance company you would outlive your $100,000 and you lost. $4,500 is all you get; they keep the rest. This is maybe not such a good deal.

Your second option is called Period Certain. This means you can take your money out over a period of 5, 10, 15, or 20 years. The insurance company guarantees to pay out all your money (plus interest) over that period. If you do not live to the end of the period, your beneficiary gets the remaining money in your annuity over the balance of the period. Live or die, you or somebody else gets back all your money.

The third option is Period Certain Plus Life. Here the insurance company guarantees to pay you a check each month for a certain period of time, plus, if you live beyond that period (even if you live to be 150 years old) you?ll receive monthly income that you cannot outlive.

The choices are not so simple. A monk in a monastery, for example, may well expect to live to a ripe old age and do better with a Lifetime Income (Although I wonder what he would spend the money on). Someone with a terminal illness may want to take a lump-sum settlement or a 5-year Period Certain. Take a close look at factors such as your health and spouse?s health, your age and spouse?s age, other sources of income, and your tax bracket.

For more flexibility you could opt for Systematic Withdrawals. In this case, you would receive a fixed percentage of the account value or a fixed monthly amount. You could stop this arrangement at any time and simply withdraw your remaining balance.

Although Systematic Withdrawals appear to have advantages over annuitization, note these two differences: With annuitization as your annuity settlement option, you can lock in a guaranteed monthly income regardless of the performance of your annuity. In addition, annuitization lengthens the tax deferral period since only part of each payment is taxed. The IRS considers the other part of your payments a return of principal.

Finally, you may want to just keep the annuity growing and not take payments at all. Some annuities, however, do not allow this and force withdrawals by a certain age. One option for you is a tax-free exchange to another annuity that may have more liberal withdrawal requirements, but watch out for surrender charges on your existing policy.

You probably never thought getting a check could be so complicated. It?s really not as messy as it sounds. In fact, I have annuity agents all across America who specialize in solving such problems. There is no charge or obligation. To have your choices compared, we would be happy to review any type of annuity settlement option and figure the most appropriate withdrawal option for you. Just click on the link in my bio below and fill out the form.

http://www.insurance-quote-advisor.com/annuity-settlement-options.html Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest speaker on behalf of agents and agencies nationwide. He is coach, mentor and motivator to over 700 general agents in his insurance marketing organization, InsuranStar Marketing. See also Free-Insurance-Leads.com.

Annuity Lead Scam Watch

Although annuity lead scams are out there, agents agree that leads are the lifeblood of their business. No matter how good the products or presentation, without a qualified prospect there can be no sale. Annuity agents also agree there is a vast difference between a lead and a qualified prospect. If you are among the majority of agents who depend on lead generating companies to supply both prospects and suspects, you need to know the standards and definitions of a legitimate lead, a qualified prospect, and an outright scam.

Leads fall into two categories, raw and qualified. Raw leads are generated according to demographics. Qualified leads are further refined by the subject's level of interest in you and your products. All leads should be filtered by specific criteria which often includes age, income, geography and possibly home ownership and marital status. When you pay extra to have your leads qualified, you refine your list of suspects down to prospects.

Annuity lead costs can range from 10? to 75? for each name on a raw list, up to $10 to $35 each for individuals who have qualified themselves by (a) knowing who you are, (b) knowing what you sell, and (c) agreeing to talk to you further. Internet leads and direct mail/direct response leads are often well qualified and worth the investment. Insist on exclusivity (you are the only agent getting the lead) and freshness (the fresher the better). Anything less can be a waste of time.

Telemarketing is still a viable means of lead generation, but there are two red flags to watch out for. Beware of companies using immature, inexperienced telemarketers who have an hourly quota to fill or who get paid per lead generated. Ask specifically who makes the calls and how they are paid. Another bad omen is the telemarketing company that charges per lead instead of by the hour. In my 30 years in the lead business I have never found a telemarketing company that consistently generates a predetermined number of leads at a fixed cost without compromising the quality. Unfortunately, most annuity agents opt for the false sense of security of knowing how many leads they get for their money instead of how good the leads will be. Quality is always the bottom line.

The gold standard of qualified leads is the preset appointment. This prospect fits the demographic and is further qualified by (a) knowing who you are, (b) knowing what you sell, and (c) agreeing to meet with you at a time and place to hear your presentation. Salespeople of all persuasions yearn for the days when they can leave prospecting behind and just do what they do best: sell and close, sell and close. But this yearning often overpowers better judgment, and many promising careers have been cut short by preset appointment programs that sound great but just don't deliver.

Ironically, the preset appointment program I hear cursed most often is the one promoted by the highest grossing field marketing organization in the country. Every agent I talk to (that's 100%) describes them as a complete waste of money. One agent told me he was quoted a fee of $5,614 for 40 appointments, of which only 25 would be replaced in case of a no-show. As expected, their standard operating procedure is to use immature, inexperienced telemarketers who have an hourly quota to fill or who get paid per lead generated. They also charge per appointment instead of by the hour.

In all fairness to legitimate annuity lead producers, however, there are three things an agent must do with every lead or appointment that often get neglected. First, assuming the leads can be emailed or posted to a web calendar as soon as they are generated, the agent must call the prospects and confirm the appointment time, place and date. Do not talk product. Just confirm and show up.

Second, if you purchase direct mail/direct response leads, do not take the lazy approach of calling for an appointment. It is imperative you use the Drop-By System. If you try to skip the work by calling for an appointment, you are just another junk phone caller - even though they signed the postage-paid card and mailed it back asking you to call them. Your appointment setting rate will struggle to reach 20%. But if you follow the Drop-By System to the letter, your appointment setting rate will soar to between 60% and 80%.

Third, before you spend any money on annuity leads or preset appointments (or before you use up the free leads your marketing organization gave you as a recruiting bonus), make sure your presentation and close are well rehearsed and brightly polished. I often hear agents say, "Just give me someone to talk to, I can sell anybody." The next thing I hear from them is, "These leads stink!"

Annuity lead scams are out there. But fortunately, there are enough good companies to keep faith (and production) alive. If you want to report on an exceptionally good, or bad, annuity lead generating company you've had experience with, please drop me a line by clicking on one of the links in my bio below.

http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. See also Insurance-Lead-Programs.com

First Rule In Annuity Seminars: Fill The Room

You need to fill the room because perception is everything. If you begin your Safe Money Seminar with empty tables and chairs in the room, those people who do show up will question whether they should have. The trick is to gauge attendance based on RSVPs. If you have 40 RSVPs for the event, figure 30 will show up. Then set the room up for 20 to 25. It sends a more prosperous message when you have to break out additional tables and chairs to accommodate the overflow. "Standing room only" is your perceived image. On the other hand, having empty seats at your meeting is just lame.

Holding your retirement planning seminar at the right restaurant will help fill the room. A safe bet is an Olive Garden style restaurant. Avoid Mexican food, Chinese food and pizza joints. Limit dinner choices to one: a salad with a single entr?e of general appeal. You can't go wrong with a chicken and pasta plate. Include a glass of ice water at each place setting. That's it; no iced tea or Coca Cola. Never pass out menus, and limit waitress involvement to serving the food then disappearing.

In choosing a restaurant, stop by several possibilities around 4:30 on any given afternoon. If you see a lot of Seniors there, it means they like that restaurant and are familiar with it. Just make sure your entree is a notch above the typical early bird special.

Always remember that a Safe Money Seminar is not a teaching event and not a sales event. It's a social event! Now that you've managed to fill the room, don't set it up like a classroom or like a horseshoe. Set the room up just like people sit in a restaurant - 2 per table or 4 per table at most. And don't think it's you they're coming to see. It's your food they're coming to eat. You are just the dinner show. Remember, you must get people to (a) like you and (b) respect you, if they are to give you that all-important appointment. Now that you've gone to so much trouble setting the stage, go out there and show them your star power!

The most effective form of advertising to fill the room is direct mail invitations. Direct mail allows you to target your demographic. You can sort your mailing list by several parameters, but age (60 plus) and address (within 5 miles of the restaurant and your office) are all that really matter. Wedding style invitations look nice and cost around 75? each. Simple post card invitations cost around 30? each and often wind up under a refrigerator magnet for future reference. Surprisingly, both wedding style and post card invitations pull about the same. But with post cards you can mail approximately 2 ? times the quantity for the same money.

Expect between a .75% and a 1% response on your mailings. By mailing 10,000 pieces, you'll get 75 to 100 RSVPs, of which around 50 to 70 will come out to your two seminars. This will fill the room with 25 to 35 attendees per night, which keeps it cozy and gets you up close and personal.

Another way to boost your response rate is to add emotional appeal to your invitation's headline. For example, which headline gets your attention better? (a) "You're Invited To Our Safe Money Seminar" or, (b) "Five Serious Mistakes That Wipe Out Retirement Savings, And Simple Ways To Avoid Them." The answer is B. Few people will show up to a Safe Money Seminar. We don't use our seminar's name in the invitation because it's not an emotional draw. But once the people are in their seats, stop teasing them and start rewarding them. "Ladies and gentlemen, welcome to our Safe Money Seminar," is now music to their ears. Remember, people act on emotions then justify their actions with logic.

The seminar business is all about working the numbers and setting enough appointments so that if one or two should cancel (which they will) what you get is an unexpected but much needed break between eager, pre-sold prospects. As always, keep your eyes on the prize: This is a career objective leading to seven figures annually. Fill the room, set the stage, make a million. http://www.Free-Insurance-Leads.com Gary Le Mon is a wholesale distributor of fixed indexed annuities for Allianz, American Equity, Sun Life Financial, and ING. Author and developer of the Safe Money Seminar, a financial planning seminar for Seniors, Gary serves as guest.

Fixed Annuity Product Sheets - What are They?

Fixed annuity product sheets can be considered to be like briefs that concisely explain what types of annuity products are offered from outside carriers. For those of you who may not be familiar with fixed annuities this is a type of life insurance payment that is guaranteed to be a certain amount a month.

In essence, fixed annuity product sheets are easy-to-understand information sheets that can help you quickly and easily decide which type of annuity product is best for you. If you are shopping for insurance these info-at-a-glance type charts and sheets simply make it much easier for you to play ?contrast and compare? when it comes to finding the life insurance plan that is best for you.

If you go online you will be able to find hundreds of these fixed annuity product sheets. In fact one insurance broker alone offers over three hundred of them to peruse if you happen to be shopping for insurance.

On these sheets you will find essential information such as the annuity's rate of return, the amount of the death benefit (should the annuitant die before the payout.) You will also find out the amount of tax-deferred profit that will go to you instead of the taxman if you opt to go for that particular life insurance product.

You can also get product sheets for variable annuities. Variable annuity products are different then fixed annuity products because they are not based on a fixed interest rate. For this reason fixed annuity products are perceived to be more secure than those that are not.

Another important detail that you will find on the fixed annuity product sheet is just how much money you will be penalized if you need to withdraw from the account before your payment is due. This is important as some life insurance companies really do charge exorbitant fees and penalties for early withdrawal of funds.

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Annuity cost basis.

Buy Fixed Annuity

Annuity can be bought in different forms. However, the deferred annuities come under three main categories. They include fixed annuity, variable annuity and the equity-indexed annuity. Each has its own characteristics and offers varying returns and benefits. Fixed annuity is one the most popular of annuity offered in the financial market. In this form of annuity, the risks are minimal and are the liabilities of the financial company ? also known as insurer - offering it. However, the investor ? also known as the insured - has no risks on investments, whatsoever.

Generally, the terms of fixed annuity hover around the following main aspects. The insurer offers to pay you a fixed amount of return on your investments for a certain amount of years. The insured has the option of paying the investment money either as lump sum amount or paid over a period of installments.

Now whatever be the market conditions, the insurer has to pay the insured the fixed amount as guaranteed in the agreement. This feature makes fixed annuity the safest and surest way to make assured returns on investment. The issuing financial company offers to reimburse both principal and the earnings.

However, there is a flip side to it too. If the prevailing market conditions are buoyant, the investor has to be content with only the assured amount of return. While insurer, on the other hand, makes handsome gains from the invested money. Conversely, there are some issues that an investor should consider before buying fixed annuity.

It?s not ideal to invest in an annuity unless there are ample contributions to other retirement plans, such as an IRA or 401(k). Simply because, these plans offer the same tax deferral as annuities minus the fees. And if an investment is made in an annuity inside a tax-advantaged account, there would be no extra tax benefit to avail. The other repelling factor is the 10 percent penalty an investor under the age of 59 ? has to pay on earnings. It?s also advisable to check the credentials of insurer before making investments. Insurers with AA or higher ratings reflect positive financial strength of the company.



Buy Annuity provides detailed information on Buy Annuity, Buy Annuity Leads, Buy Fixed Annuity, Buy Retirement Annuity and more. Buy Annuity is affliated with Fixed Annuities.

Annuity Cost Basis and Previously Taxed Money

Before you think of withdrawing any money from your annuity you should look into what type of annuity cost basis is defined in your agreement with the life insurance company. This is because if you are not careful you could easily exceed your annuity cost basis and be taxed heavily from borrowing from the policy.

You should also examine the annuity cost basis before you buy an annuity of any kind as it could impact how much you might have to pay if you had to withdraw that money for an emergency one day. After all one never knows when a sudden illness or accident may require digging into your retirement money.

Technically the annuity cost basis is defined as the initial payment or premiums that you paid out when you purchased a nonqualified annuity. In this scenario you have already paid taxes on the money so you will not be taxed to the gills if you have to withdraw the money.

Sometimes the annuity cost basis is not taxed upon withdrawal. This is particularly true if it was not fully taxable n the first place. This means the cost basis would be minus the amount that is non-taxable by the government.

It is a good idea to look at the fine print of any life insurance offer to see what the conditions are when it comes to your cost basis. You need to look to see how much of your money will not be taxed upon withdrawal.

Another valuable thing to know is that most insurance companies insist that any withdrawal that you make from your annuity must come from what you have earned first. After that any amounts that exceed your cost basis will be taxed as ordinary income is and if you are under the age of 50 years, an additional ten percent in federal tax will also be slapped upon your withdrawal.)

Tiffany Walker has finally revealed her annuity secrets online. Read the latest by clicking here: Fixed Annuity Choices.