Medicaid Qualified Annuity, Buyer Beware and Agent Liability

The need for some clients to protect assets from Medicaid Spend down is obvious. It can be because of the well spouse?s needs, a handicap child or a myriad of good solid reasons. This is where the annuity salesperson come charging to the rescue.

Most agents know that certain types of annuities can avoid spend down and can provide protection for the assets in the annuity. These annuities have specific language to make them fully qualified under Medicaid rules. Most annuity contracts DO NOT contain the language to qualify for the Medicaid rules.

The monthly payout must be for the life expectancy of the annuitant. The annuity cannot have any free look in the contract and the value of the annuity is agreed by all parties to be zero. The only value of the annuity is the monthly income. These features are actually part of the contract and are allowed by 29 states in the US. It is sometime referred to as the ?name on the check rule.?

The personal liability comes into play when an agent does not fully understand the rules nor the process that must be adhered to in order to qualify the funds. An agent will sell ?just an annuity? explaining to the client the funds are safe from spend down. You have to ask yourself why would this happen? The reason is obvious, large commissions.

Commissions for the Medicaid spend down annuity are often very low while the commissions for a standard annuity are usually much higher. The agent will sell the concept of the annuity but provide a product that will never qualify for Medicaid spend down. This is where the liability issue comes to the surface. Of course by then the agent could be on to a different career or the obvious answer is ?I didn?t say that.?

At the time of need the client could be faced with additional stress and maximum exposure to exposed assets. This creates a very unfair situation for the client and the agent is almost never left holding the bag. Then of course there is this sales pitch and explanation.

Recently I ran into a situation where an annuity agent had sold a 17 year surrender contact to a widow aged 77. She was told that the annuity would protect all her assets and she could leave those assets to her children. In a couple of years she became ill and was in need of nursing home car and the annuity was the primary asset. Of course as a single person there was no way to protect the funds in the annuity and with the children, I called the agent. His reply was amazing, he said he knew the annuity was not going to be Medicaid qualified but it was not his problem, it was his ?errors and omissions? problem. He knowingly sold the product for the monstrous commission and had calculated the insurance company would make things right.

The client had to eventually cash in the huge surrender penalty annuity and suffer the losses. She was ill and not up to a fight with anyone and just wanted to be left alone.

The shame of this story is as annuity salespeople we are all considered guilty by the actions of a few. So here is my advice.

? Always work with an attorney who specializes in Medicaid planning

? Never call yourself a Medicaid specialist

? Never give legal advice

? If you sell a Medicaid qualified annuity make certain the contract will work in your state, ask the home office, they are there to help

And finally, be honest and open. Make certain the prospect understands exactly how a Medicaid Qualified Annuity works and how the benefits directly affect them and their personal situation.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com.

Use The Adwords Miracle To Get More Annuity Leads

Working with insurance agents over the years I have found one commonality? they fear technology. Of course, not all do, most of you reading this online article probably don?t? but in my experience I find fear of technology generally to be true. Some agents I work with still refuse to use email.

What they?re missing out on is an abundance of fresh, precision targeted leads that can only be found on the web.

I?m not talking about banner ads or pop-ups ads or email spam, which are so broad that they are rarely effective. I?m talking about keyword advertising. While there are many places to purchase keyword advertising Google?s Adwords system is by far the best. So what is keyword advertising? When you type in a search phrase, annuity leads for example, on Google you will be presented with one page displaying two types of similar results.

Organic:

In the center you?ll find organic results, organic being that the sites did not have to pay to be listed. They?re simply relevant to the search phrase.

Paid:

On the right hand column and directly above the middle results you will see other relevant results in boxes. Those are paid results. Companies pay by the click and bid against one another to be listed there.

The magic of keyword advertising is that you can target your ads directly to what people are searching for. If somebody types in annuities they are looking for annuity information. If they type in annuity agent Spokane, Washington for example, it?s obvious they are looking for a representative in the Spokane area to discuss annuities with. If somebody types in targeted phrases such as these the chances of converting the search to a lead are far, far greater than if somebody is perusing a general website and happens to see a banner ad for annuities. Make sense? In other words, people are looking for you.

Google charges by the click. Depending on your website, landing page and offer you can acquire reasonably priced leads. One offer I ran on Google averaged out to about $7.50 per lead. I converted roughly one in twenty-five to a sale. I made huge returns on my investment and the people wanted to see me. I did not have to sell anything? they were already in the market to purchase an annuity and I simply walked into their line of vision. Easy.

Now here is where the fear part comes in. How do you use Google Adwords? I?m not going to lie; it can be complex, especially if you?re inexperienced with internet advertising. I do not have enough space here to explain all the ins and outs. There can be a lot to it and the last thing I recommend is learning the hard way. You can lose a lot of money fast. To make it easier for you I read several e-books on the subject of setting up, running and maximizing adwords campaigns and the very best, most comprehensive book is Adwords Miracle. This book is not targeted to the insurance industry? it?s actually targeted toward affiliate marketers, but it is entirely useful and the same tips and tactics apply to our industry. In your mind simply substitute affiliate marketing with annuity marketing and presto, it?s 100% relevant.

The book is on the spendier side but with this you truly get what you pay more. You will save the money you spend on Adwords Miracle in the first week of running adwords. The book even covers landing pages and how to build in triggers to get higher conversion rates, which makes it truly invaluable. I heartily recommend Google?s Adword?s system for laser-targeted lead generation and Adwords Miracle as a map to get you there.

Bill Broich is a 30 year annuity salesman who helps agents generate annuity leads. Visit his website to learn more - Annuity.com.

How to Sell Your Promissory Note-Real Estate-Business-Annuity-Structured Settlement

First, the definition of a Promissory Note:

(A promissory note is defined as 'A promise to pay a certain amount of money on a periodic or future lump sum basis, defined by the terms and conditions contained in the Note Document'. Usually, a Promissory Note is constructed during a tangible property sale event where the property seller Takes Back a promise-to-pay (Promissory Note) instead of Cash.)

Owning a promissory note, instead of requiring cash, sounded like a good idea at the time you sold your real estate or business or accepted your Structured Settlement because you would have a guaranteed steady stream of monthly payments at a reasonable interest rate. Right?

Then, you soon found out that:

1. The interest rate you charged is now too low,

2. The payor of the note does not always make the payments on time so you have to call and demand the payments,

3. You have to pay taxes on the income,

4. You figured out that the value of your note diminishes everyday, and,

5. You could put the lump sum of the note money to better or now-needed use.

So, you decide to sell your promissory note.

1. First you went to your bank and they would not buy it nor did they have any information about how to sell it.

2. Next, you asked your friends and one said Find a Note Broker. So, you searched on the Internet and found a million web sites all purporting to be able to buy your note. You talked with a few but did not get any satisfaction or few return calls. Now the frustration sets in.

Here's how the Note Buying business works:

1. Notes are purchased by seasoned, reputable investors seeking long term returns on an investment using their own money. Investors can be individuals, groups, companies, pension funds or specialty funds.

2. A note is valued according to the long term yield to the investor. It?s named, Time Value of Money. Or, a dollar today is worth more than a dollar tomorrow. Therefore, your note can be purchased at a discount or less than its current principal amount in order to provide the investor?s needed long-term-yield.

3. The note yield and value is determined by the Note Interest Rate, the credit score of the note payor, the term of the note, the payment schedule, the Loan To Value Ratio (LTV), the payor's equity in the property, the security for the note and the terms of the note.

4. Your note can be purchased by an investor based on his/her required note type, note criteria and required yield.

5. Note investors specialize in different types of notes. Some buy only 1st Deed of Trust Real Estate Notes or Mortgages, some buy only Business Notes or Annuities, etc. To make a long story short... you do not know if the person you are talking to is a Broker or an Investor or both or what note type, criteria and yield he/she requires. Frustrating. Now you think all note investors and brokers and the whole note buying industry is sleazy, unethical, unprofessional and worthless. Well, I admit that part of that is true for many unprofessional brokers but REAL Investors and REAL Brokers are here, honest, professional and provide a valuable service. How do you know? Just ask him or her if he/she is a Broker or Direct Investor, what types of notes they desire and what is their criteria and process. More on this in another article.

This is what you need to know and do regarding your promissory note:

a. The value of your note is determined by when and how you construct it. When constructing your note, assume you will want to sell it within the first year. If constructed properly and professionally, it will have high value. Professionally means using the services of an experienced Business or Real Estate attorney to construct your Note. Never use one of the simplified Note Forms available anywhere. Think about it... why do you think Real Estate Lenders use exquisite, complex, complete Loan Documents that are constructed for their own lending criteria? Next, Real Estate secured notes are valued on the appraised value or sale price of the property minus the payor equity and the credit worthiness of the payor. Business Notes are valued on the note payor credit worthiness and historic business performance.

b. The highest valued notes are those that the current Note principal amount is not more than:

i. 80% of the sales price of the Real Estate if it's a 1st Deed of Trust Note/Mortgage, or 20% if a 2nd Deed of Trust and the total of a 1st and 2nd doesn?t exceed 80% of the sales price or,

ii. If a business note, 67% of business sale price.

c. The payor responsible for the performance (payments) of the Note credit score must be above 640 (the national average credit score is 678) when you construct the Note (The lower the credit score, the less your note is worth). Always obtain a current Credit Report on the payor before concluding a note transaction. You have the legal right (by virtue of the Federal Fair Credit Act) to request or obtain one because you are going to be their creditor. Go to www.transunion.com and click on Consumer Info to obtain a Tri-Merge credit report (it will provide you a payor score and report from each of the three credit reporting agencies). You will need the payor full name, address, SS# and birth date. You do not need your payor?s approval to obtain their credit report because you are going to be the payor?s creditor.

d. The Note payments should be monthly.

e. The Note terms should be:

i. For Real Estate Notes: 'Amortized Monthly, Payments in Arrears'. Or, Amortized Monthly, Payments in Arrears for 15-30 years with a full Balloon payment due in 5 years. Try not to accept an 'Interest Only, Full Balloon at the end' Terms.

ii. For Business Notes: ?Amortized Monthly, Payments in Arrears for no more than 5 years?.

f. Your Note should carry an Interest Rate tied to Prime + 2%. Prime of this date is 8.25%.

g. Your Business-Promissory-Note should have a Collateralized Personal Guarantee from the payor equal to the Original Principal Amount of your Note. This Collateral should be tangible, like Real Estate, that is owned by the payor outside this note transaction.

h. The above are the basics. Your accomplished attorney should know how to construct your note correctly and know who we are so he can contact us from our web site for knowledge and instruction.

Now, Selling your Note:

1. Your first goal is to receive a cash-purchase-quotation. Only Direct Investors can provide this. A broker will take your information, find an investor, obtain a quote then present you with that quote less his fee. Sometimes Brokers have investors that will pay you more cash than professional investors, but there is usually a catch. Don't get me wrong. Note Brokers serve a valuable purpose.

2. Gather all the information about your note. You can find the note questions you have to have answers for at www.notefundingcenter.com/sellnote.html Here you just click on the ?Type of Note? and a Note information Worksheet displays asking all the questions needed to provide a VALID cash-purchase-quotation.

3. Find a reputable Note Broker or Direct Investor. Search on the Net with keywords ?sell note?, ?note buyer?, ?mortgage buyer?, ?annuity buyer?, 'structured settlement buyer'. You will find us plus hundreds of others. Contact the ones you like and ask questions. Just remember, there are very few REAL direct Investors. Just ask.

4. If you want to use a Broker, (a reputable Note Broker will request specific information about your note; he will package the information and contact us and other Note Buyers he has brokering agreements with). Some will broadcast your note to everyone on the Net. Broadcasting will devalue your note to almost $0.00. So, if you want to use a broker, ask him to provide you with the list of his contracted buyers he is sending it to and agree in writing that he only present your note to those you have agreed.

5. If you want to list your note for sale on the Internet yourself, there are many Note Listing sites where you can list your note and investors will find your note and contact you. This is named 'Broadcasting'. See #4 above.

6. A Note Investor/Buyer like us , will request detailed information about your note before providing you with a cash-purchase-quotation. Logical, right?

7. You should receive numerous phone and email communications from your selected Broker or Investor prior to providing a cash-purchase-quotation. In our case, after 30 years in the business and 50% referral customers, we contact you within 1 day of your note information submission and explain the process, provide you a personal supervisor and ask any additional questions. Then, provide you a cash-purchase-quotation.

8. Your Note cash-purchase-quotation is usually a Net-Cash-To-You quotation. Sometimes it will be "$XXXXX.XX with your provided Appraisal and Title. You should always know what your Net-Cash will be after selling and funding. Just ask.

9. After you accept the cash-purchase-quotation,

a. You will be requested to agree to the note-purchase-quotation and provide certain note related agreements and documents. (You already have the majority of the documents.)

b. The note-funding-processing-service will conduct ?due diligence? on the note, property, documents, credit and history.

c. Assuming all the Note components pass the due diligence, your note will enter into ?Transaction Processing and Funding? and you will receive your cash funds. Normally this process takes up to 30 days.

Bottom Line:

1. Your Promissory Note is your serious financial asset. Treat it with respect.

2. Construct your note so that it is salable at the highest possible Cash.

3. Have all the logical Note information readily available if you want to sell it for the most cash. See our web site for the information and documents needed. Or, email us with your questions.

4. Select a note buyer/investor/broker/listing service that you feel provides you the best service.

5. Inform your existing Note Payor that you intend to sell your Promissory Note of which he is the payor. He will have NO negative effects. The only change he will experience is to whom he makes his existing payments.

6. Don't get caught up in the excitement of the deal.

7. Heed all the above.We are here to help you from beginning to end. Remember, we have been buying Notes for 30 years and respect that this is probably your first and only Note and a valued asset.

notefundingcenter.com

The Author of this article is David Castellini. He is founder and President of Note Funding Center- http://www.notefundingcenter.com, a 30 year buyer of Notes, Mortgages, Annuities and Structured Settlements. He and the company are considered the authority on Future Income Stream Instruments, cash-flow-instruments and seller-financed-notes and seem to provide the most accurate information, best prices and best service. He is also a Banking Consultant and Graduate Business School professor. David can be contacted from our web site.

Structured Settlement Annuity: The Real Deal

Structured Settlement Annuities have been shown to provide a valuable, safe and guaranteed source of lifetime income to parties in personal injury or other cases. Today we look at situations where these special annuities would be helpful.

Personal injury.
This is obvious to most, but let's take a closer look at situations that might warrant such settlements.

Temporary or permanent disability.
A structured settlement can help here by making sure the cost, if any, of rehabilitation is covered.

Guardianship of minors or persons with diminished mental capacity.
We've seen before how dangerous mismanagement of a lump sum settlement for a child can seriously impact the future care of the child. Guaranteeing that care for the injured child will be covered will add greatly to the overall quality of life for the caretaker and the child.

Wrongful death, particularly when the surviving spouse and / or children need steady income.
When tragedy strikes the main money earner of a household loss to a family is felt in many ways. In some cases this can cause financial ruin to a family. A structured settlement can help replace the monthly income lost and provide a family piece of mind that the rent, bills etc will be paid for.

Severe injuries, especially those that result in shortened life expectancy.
Once again, protecting the financial future of the family or caregivers to make sure that specialized care is covered and monthly expenses are paid.

Cases where future needs can be determined today.
This is a bit more risky as it can be difficult to predict expenses in the future. However, certain costs may be fixed or are more easily anticipated like mortgages, tuition, and monthly bills.

If someone finds themselves in any of these situations, it's important to take these factors into consideration:

1-Significant, ongoing medical expenses
2-Rehabilitation or permanent care facility expenses
3-College tuition, retirement income, the down payment on a home or a mortgage payment
4-Replacement of monthly income, annual income or supplemental income

Though some of these may seem too far in the future to think about, ignoring these will cause more hardship than necessary.

Michael DeGeorge has done extensive research on structured settlements and shares a wealth of information on his website http://structsettle.gitgoingnow.com. Download your free Structured Settlement Annuity information today from http://structsettle.gitgoingnow.com.

Annuity Buyers

Annuities are a series of payments made by an institution like an insurance company to the annuitant (annuity holder) at regular intervals over a fixed time period. Most of annuity buyers are from middle-class families having household income less than $75,000 a year, and their main objective is to have an income after retirement.

According to one survey, the average age of an annuity buyer is 66 years old and retired. Generally these people think that their financial needs after retirement will not be covered by a pension or other employment related retirement funds. They invest in annuity plans to have guaranteed income. A person can purchase an annuity if a lump sum is received like a pension, the sale of land or house or any inherited property.

A potential annuity buyer, particularly first time buyer, should be very careful in deciding the type of the annuity to invest in and on the insurance company to go with. Some annuities offer guaranteed income and some s do not. Some annuities offer returns even after the death of the annuitant, but some types of annuities provide income only for a fixed time period. The excess income over the total premium amount is tax-free in some types of annuities, whereas in some other cases, the excess income is taxable. Therefore, the buyer has to understand the basic types of annuities in order to decide which type is suitable for their financial situation.

The buyer can seek the help and advice of finance professional or annuity broker.

Before purchasing an annuity, the buyer has to understand the payment options. For instance, the company may pay some types of annuities only after the death of the annuitant and some after a fixed time period ranging from five to twenty years. The buyer should know about front-end loading fees, yearly maintenance fees and surrender charges. Another important point to know is the credit rating of the insurance company by agencies like Standard and Poors and Moody?s and Fitch. These agencies assess the insurance company?s ability to meet all of its claims on time. After considering all these criteria, annuity buyers need to select the best annuity to purchase and to later on enjoy.



Cash For Annuities provides detailed information on cash for annuities, annuity brokers, annuity buyers, annuity payments and more. Cash For Annuities is affliated with Cash Out Refinancing Scams