Do Fixed Annuities Have A Prospectus?

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Hi there, Stan the Annuity Man, America's annuity agent, licensed in all 50 states. And

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you're saying to yourself, “Does that say Stan-Henge, or does that say Stonehenge? What does that say

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on his shirt, Martha?” “Stan-Henge. Stan-Henge.”

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Yes, I know Dr. V just laughed in the background. You might have heard that

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sigh of just joy. You think it was a sigh of despair. No, it was joy. It was absolute joy.

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Hold on.

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The question is: Do fixed annuities have a prospectus? A big old chunky thing that,

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if you have no life, you want to sit down and read at night, even though the

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wife wants to go out to dinner, you're like, “No, Martha, I got to read this prospectus.”

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I'm going to talk about that. Do fixed annuities have a prospectus?

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I'm going to keep the guys behind the camera happy and alert because we're shooting it at like two in

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the morning. It's two in the morning here in the mountains of wherever we are. We're inside of a

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mountain, by the way, just so no one can track it. Well, I'm going to talk about that after this.

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So, do fixed annuities have a prospectus? The answer is no. And let me explain why.

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Fixed annuities are regulated at the state level and overseen by the NAIC,

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National Association of Insurance Commissioners. Very good group of people that make sure

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everything's safe and everything's going down the road smoothly and protecting the consumer.

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Prospectuses— or plural, prospecti, I guess— those are securities. When you

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buy a security from a bank, a brokerage firm, etc., that's what you're thinking.

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So, a variable annuity is not a fixed annuity. It's a security

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that's overseen by the SEC and FINRA. And if you say, “Okay, I want to buy

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a variable annuity,” which I'm trying to figure out why you'd do that because the

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average annual fee for a variable annuity is 3% for the life of the policy— hello— but

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you're going to get a prospectus to read. Alright? So, you're saying,

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“Well, okay then, you know, if that's what we get."

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I'm assuming the same thing goes with RILAs, registered index-linked annuities. They're

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going to have a prospectus as well. That's a security product, meaning

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you have to pass a Series 7 or be an RIA, etc. All those licenses I had in the past,

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could pass them tomorrow on a whim, but there's not a product that requires a prospectus that I

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feel like I need to be recommending to my clients because my clients only purchase

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contractual guarantees of the policy. They own policies for what they will do,

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not what they might do. They transfer the risk to

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solve for principal protection, income for life, legacy, or long-term care. That acronym is PILL.

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So, if you're buying fixed annuities— and let's go through them— multi-year guarantee annuities,

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that's the annuity industry version of a CD. Fixed index annuities, that's a fancy

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annuity version of a CD. That's very complicated but gets CD returns.

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QLACs, SPIAs, and DIAs are qualified longevity annuity contracts, deferred income annuities,

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single premium immediate annuities. Those are all fixed annuities.

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Now, if you want to go down the rabbit hole and read about what you're going to buy and

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what you're going to receive in the mail, we can send you what's called a specimen policy.

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No, it's not a urine-in-a-cup, Big C behind the camera. It's a specimen policy.

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But it's not going to have your name in it. It's not going to have your dollar amount in it,

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but it's going to have the verbiage of the contract that you're going to receive

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from the issuing life insurance company. So, variable annuities, RILAs— prospectus,

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prospecti— you’re going to get that. Those are securities

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products, FINRA, SEC. All the other stuff that I recommend— QLACs, SPIAs, DIAs,

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Income Riders attached to index annuities, index annuities as the underlying product,

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and then multi-year guarantee annuities— all of those, you're going to get specimen policies.

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Now, we have no problem whatsoever sending you a specimen policy. I'm just saying,

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don't call us up and say, “Well, my name's not on it, and the dollar amount's not on

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it,” because I just told you your name will not be on it and the dollar amount will not be on it.

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It'll be the verbiage. But here's the good news.

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You're saying, “Well, that's crap. That's total crapola, son. I want to see the whole thing.”

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Well, you can do that. The good news in the annuity industry,

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which is the only industry on the planet in the financial services space that allows you

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to get your money back after the policy's in force, it's called the free-look provision.

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Each state has different days that they give you. Some states,

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it's as short as 10 days from the time you receive the policy. Some states,

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it's 30 days from the time you receive the policy. You're going to receive that policy. It's going to

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have your name. It's going to have the dollar amount. It's going to have the contractual

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guarantees. It's going to have the verbiage that was in the specimen policy that you read.

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But you can look at it. It's in force. And if you call the carrier within that time— and

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we'll tell you the free-look time, we have no problem with that— you get all your money back.

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They don't ask you why. They don't try to keep you there. By law, they have to send your money.

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Wouldn't it be nice to test-drive stocks or mutual funds or ETFs or bonds or Bitcoin? Little Bitcoin.

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Wouldn't it be nice to be able to test-drive that and get your money back with no questions asked?

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Not going to happen. I think I just blew out the ears of

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Big C behind the camera, but that didn't matter, okay? He's gone to rock concerts.

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But you can free-look the policy. So, you can have your cake and eat it too, contractually.

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You could read the specimen policy and go, “You know what? I approve, Stan. I like that.”

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But I will tell you on a side note that if I wrote the specimen policies for the industry,

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it'd be a better world because I'd put it in Stanglish. That's Stan-English. Stanglish,

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so you'd understand instead of a bunch of lawyers going “here to for where the

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Shakespearean”— I mean, it is a lot, but I can translate that. I'm the annuity whisperer.

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So, if you get a specimen policy from us and you want to just go through it,

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I can go through it. I know these things. I've done this almost three decades.

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So, fixed annuities don't have prospectus, prospectuses, prospecti. They don't have them.

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They have specimen policies. Variable annuities and RILAs,

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they have prospectuses. They're securities. That simple, okay?

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But it's good. The annuity industry is the most pro-consumer industry on the planet. It's why I

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left the big boys on Wall Street and came to the annuity industry and the life insurance industry.

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In my opinion, this is the safest place to have your money.

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Everyone out there is going to say, “Well, it's crap, Stan. It's the Treasuries.”

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Okay, great. Maybe Treasuries. But everything else? Come on, man.

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I mean, I'm not about risk. I grew up in rural North Carolina. We didn't have any money,

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alright? That's not a bad thing. That's a great part about this country,

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is you can say, “Wait a minute. I don't have any money, and those people have money. How do I get

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money? Do I just outwork those people?” The answer is yes. You can

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outwork them and outthink them. Do me a favor. Shoot me an email. I'm accessible.

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I own the company. It's huge. It's massive. I walk into my Las Vegas office

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all the time and go, “Wow.” And sometimes I'm like, “Impostor

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syndrome.” Going, “Man, this thing started in my car, and now this huge office has all these people

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that are all licensed, not on commission.” I'm proud of it because what we're doing

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is we're selling contractual guarantees. So, you can contact me, [email protected].

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If I don't respond, that means I'm dead, okay? And that's not good.

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But I do have a continuation plan in place. Do me one last favor. In addition to going to

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my site, The Annuity Man, and contacting me, I did a video on artificial intelligence and

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how that is going to affect the life insurance industry.

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And I know what you're saying. “Well, it's probably pretty good to get rid of

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a bunch of middle-manager dudes, associate vice presidents to the vice president.”

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Well, those guys are in trouble. No doubt about it.

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But when it comes to you— and that's all I care about. I don't care about

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those guys. I care about you— how's it going to affect you and the contracts.

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That video explains it, okay? That video explains it.

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Give that a watch. Contact me. If you're nice, I'll send

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you one of these hats for free if you email me and give me the reason why, other than you want one.

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But if I send you one, then you have to send me a picture of you at a place you typically don't go.

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Just got one from a guy that got one. Wasn't a client, and he said, “I'm going to be a client.”

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Okay, great. He was in Indonesia with the light blue hat on.

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That's pretty cool. I like that. Hey, my name is Stan the Annuity Man.

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Stan-Henge. Stan-Henge. It's mythical. See you next time.