How Do Annuities Provide Guaranteed Income For Life?

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So, how do annuities provide guaranteed income for life? No, I did not write that title, but it sounds like I did. That's kind of a layup. We're going to talk about that, how it works, the four products that solve for lifetime income. Oh, by the way, my name is Stan the

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Annuity Man, America's Annuity Agent, licensed in all 50 states. My my shirt, I heart annuity haters. I was interviewed by the New York Times a long time ago, and this is the shirt I wore. I got so much hate mail from the annuity industry, but I do like walking

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through airports with it on, and people like, "Yeah, me, too." I'm like, "You're a hypocrite. You don't You have Social Security. That's the best inflation annuity on the planet." Hypocrite much? >> [sighs] >> Lifetime income is good. Somehow, the annuity industry has completely

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messed up on the message. But, guess who's going to take over from here? Stan the Annuity Man. We're going to talk about how annuities provide lifetime income after this.

1:10How Annuities Provide Lifetime Income

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So, let's get to the basics. Life insurance companies issue annuities, and annuities for lifetime income is primarily based on your life expectancy or joint life life expectancies at the time you take the payment. Interest rates play a secondary role.

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Interest rates play a secondary role. What did I have to say? Yeah, interest rates play a secondary role. It's all about life expectancy. It's all about solving for longevity risk, which is the fear of outliving your money. There's no ROI until you die. As

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long as you're on a respirator, breathing, you don't have to be conscious. Well, most people in the in in the country aren't conscious. They're breathing. But, the point is, as long as you're breathing, it's going to pay. Annuities, as a category, are the only

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product type that provide lifetime income. Don't hit me with, "Well, I just bought a 30-year Treasury." Shut up. Just shut the heck up. That's not lifetime income. That's peeling interest off the top. Big deal.

2:12How To Choose The Best Annuity For You

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We're talking about if life if if AI changes the life expectancy tables and you're projected to live to 125, you better have a plan in place to have lifetime income to pay for as long as you're breathing. And if you're going to do that, choose A+ or better carrier to back it up.

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We don't care about the name, the logo, any of that. It's A+ or better and the highest number. We quote all carriers for your situation. We ask two questions. What do you want the money to contractually do? When do you want those contractual guarantees to start? Lifetime income

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quotes, if you go to my site at the annuityman.com, they change like a gallon of milk every 7 to 10 days. These companies are bidding on your business and they if they have enough of your age group, age range, then they don't want you. They're going to lower

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the the quote to not attract you. It's really that simple.

3:04Important Warning For Buyers

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Anyone showing you one quote or one carrier is full of crap. And they're not acting like a fiduciary. What's a fiduciary stand? That's an F word. You darn right it's an F word. That means putting your best interest ahead of the advisor agent. Duh, huh? Every single

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advisor in the financial business should be automatically doing that. It's a no-brainer.

3:35How Life Insurance Companies Work

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So, life insurance companies have the big buildings for a reason. They know when we're going to die. Nod your head. They do. And so, because of that, if there's a bunch of your age people in a football stadium, same gender, same age, some of you going to die early, some of

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you are going to die late, some of you are going to die right on the nugget. That's the reason property and casualty companies don't have the big buildings cuz they don't know when the tornado and the hurricane is going to hit. Hello, Floridians. I live part-time in Florida, so been

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through all of that. Going through all of that, will go through all of that. I always tell my wife, "This house." She got I love my house. I love it. Like, eventually the ocean will take it back. It'll take it back. It's the It's the ocean's. It's not ours.

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It's property tax and the ocean's. Well, we don't owe anything on it. Still the ocean's. It is what it is.

4:31How Lifetime Income Pricing Is Calculated

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But, how do how do annuities solve for life expectancy and, you know, you not outliving your money? It's all I mean Lifetime income is all about life expectancy. So, let let's just say it's it's on joint life, you and your spouse. They're going to They're going to

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you know, back up both people, but they're going to look primarily at the younger one. They're going to price it primarily on the younger one's life expectancy.

5:02How AI Can Affect Lifetime Income

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And right now, artificial intelligence is changing a lot, man. It's changing our company. You know? I mean, in the annuity business, AI still stands for actual individuals, okay? It still does. But, we're finding that AI can really help our clients, too.

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But, in the life expectancy game, AI is going to shorten the medical breakthroughs, which means the insurance companies will have reason to lengthen out your life expectancy, which means there'll be more payments, which means those payments will be lower.

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Which means also that right now, not a sales pitch, just a fact, life lifetime income is a bargain. So, Stan, when is this life expectancy table thing going to change for May I? Listen, if I knew that I don't know what I'd do. Wouldn't wouldn't be talking to to a camera.

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Be trading interest rate futures or whatever futures. Nobody knows, but we all but we do know it's going to happen. So, annuities are

6:11Simple Process of Buying Annuities

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the only category that can provide lifetime income. Annuities are the only category that can solve for longevity risk. Annuities have four products that do that. Single premium immediate annuities, deferred income annuities, qualified longevity annuity contracts,

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and income riders. Those are the four ways to do it. We ask two questions. What do you want the money to contractually do? When do you want When do you need those contractual guarantees to start? From those two answers we can align you with the product

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lifetime income product that's going to provide the highest contractual guarantees. And then from there it's A+ in the highest number. It's that simple. Don't make it difficult. You're buying a pension. You already own one. Social Security, best inflation annuity on the planet.

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You're building your income floor. For the life of me I There'll be business schools studying this from a marketing standpoint, the complete buffoonery of the of the annuity industry botching a monopoly that people need and somehow they're focused on growth, growth, growth.

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Potential, potential, potential, hypothetical, hypothetical illustrations. We own the guarantees. We own the lifetime income space. Why wouldn't we just focus there? Guess who is? Guess. Huh? What? No. Me. Me. I get it. I was at Morgan Stanley, Dean

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Witter, Paine Webber, UBS. I get it. I'm going to drive home that message. Okay? Do me a favor. Go to my site,

7:52Next Steps and Helpful Resources

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theannuityman.com. I've written 600 articles, so you can get them for free. You can book a call with me. If you don't want to do that, you can email me, [email protected]. One last thing, above me, there is a video I shot about how annuities contractually,

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factually, pragmatically solve for inflation. Not some hypothetical, not some pie in the sky nonsense, steak dinner seminar pitch crap. That's how you do it. All right? My name is Stan The Annuity Man. See you next time.