How Will AI Affect Annuities?: Fun With Annuities

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Welcome to Fun with Annuities. My name

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is Stan the Annuity Man, America's

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annuity agent, licensed in all 50

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states. Today's topic is a very good one

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and timely. How will artificial

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intelligence AI affect annuities? Stand

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the annuity man.

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Good question. I've given this a lot of

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thought. I'm not going to always say,

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well, AI is horrible and it's going to

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put people out of work. That all might

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be true. I'm not smart enough to discern

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any of that. But let's talk about the

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way that I think it's going to affect

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annuitities in the annuity space. First

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of all, AI is pos there's positives and

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negatives. We all can agree with that.

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However you use it, if you type in into

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a search bar now, AI just pops up. It's

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like they're all knowing, all seeing,

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whatever. But I think from an annuity

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standpoint, what we have to look at AI

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and the medical field, AI and medical

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breakthroughs.

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If there's one thing that I'm excited to

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see with artificial intelligence is that

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being applied to the medical field and

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to say cancer research or diabetes

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research or something like that. I think

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they're going to speed up and and

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shorten the curve and and in essence

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lengthen our life expecties because

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there's going to be breakthroughs. Now,

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we're really early in the game. Check

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the taping on this. I know this is

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evergreen content, but at the time of

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this taping, we're just getting started

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in the AI world. We're just getting

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things rolling. Reminds me, I've been

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around the block a little bit. I know

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you're saying, Sanders, not there's no

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way, you just look young. I mean, right,

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Zeke? I look young. Zeke's behind the

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camera. Um, but but I remember like when

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iPhones first came out and Zeke said

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with the shake and said, "I remember

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when there was no cable television. I

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remember when there's only four

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channels. I remember the first laptop. I

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had one. It was from Dell." Um, this is

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this is the bluewater wild west of AI.

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Now, how does that affect annuities and

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your decision? And before I even start

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in, this is not a sales pitch, okay? You

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know me better than that. You know, we

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don't do that. We don't do high pressure

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selling. We don't do outbound phone

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calls unless you schedule a call with

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us. Okay? Uh we're not hammers looking

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for nails. Um but I really think at this

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time that the life expectancy longevity

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tables are in your favor.

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When you buy a lifetime income stream

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annuity, you're in essence transferring

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the risk to the life insurance company

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that issued that lifetime income annuity

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to pay you for as long as you're

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breathing. If you set it up joint life,

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it's so that it's going to pay for as

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long as one of you is breathing. Okay.

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with medical breakthroughs, the fact

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that we're not [clears throat] smoking

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as many cigarettes as we used to and

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drinking as heavily. I know that we

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don't eat great food, all of us, but um

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I believe AI the current long the

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current tables, life expectancy tables

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that you're that that your lifetime

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income annuity is primarily priced on

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and based on. It's not interest rates,

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it's your life expectancy. The older you

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are, the higher the payment. Why?

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because there's less projected life

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expectancy which means there's fewer

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payments which means those payments are

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higher. The reverse is true if you

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started at a younger age but I think the

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opportunity is to lock it in now. You're

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locking in life expectancy tables now

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that have not been affected by

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artificial intelligence.

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Now I might be wrong. I mean I might be

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wrong about this but I don't think so. I

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think we're gonna look up down the road.

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And that's a great country song, Zeke,

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looking up down the road. But I digress.

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We should we should look at locking in

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lifetime income

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now because I think

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very soon those life expectancy tables

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will change against you.

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I've not heard one person in the annuity

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industry talk about this. button mwah.

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That's French for me. But I think it's

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important um you know with with 14,000

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people turning age 65 every single day

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and with 91% of us that don't have

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pensions,

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what are you what are you what are you

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doing? You can't depend on social

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security.

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Unfortunately, a lot of people do and

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have to. But if you're fortunate enough

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that you don't have to solely depend on

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social security as your lifetime income

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stream. source,

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then you should aggressively look at

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single premium immediate annuities,

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deferred income annuities, qualified

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longevity annuity contracts, and income

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writers. Those are the four types of

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annuities that provide lifetime income.

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Those are the four types that if you ask

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me what the return on investment ROI is,

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I can't tell you that. In fact, I have a

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saying for that. There's no ROI until

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you die. These are transfer of risk

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products. You can go to my site at

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theanuityman.com and you can rent quotes

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247 365 and no one will call you. No one

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will pick up the phone and call you. No

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one will bug you. You can look at the

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life expectancy and the payouts.

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What I'm saying to you now is is look

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think think a little broadly about where

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we're at. Artificial intelligence.

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There's good and bad. I have questions

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about, you know, the the power sourcing

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of it and all that. you know, we're

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going to have to probably do some

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nuclear stuff to to power the a the the

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memory and the the computers. And I know

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that sounds really technical, but you

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know what I mean. Um, but artificial

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intelligence is going to affect

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everything. And it's definitely

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definitely going to affect annuities and

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lifetime income streams because it's

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going to affect the medical profession.

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It's going to affect medical research.

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It's going to shorten the curve on on

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that research, which in essence is going

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to there's going to be more

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breakthroughs medically in your favor

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using AI, which means you're going to

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live longer. Now, a lot of you out there

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say, "San, I want to live longer." Okay,

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that's that's your call. But I think

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that we're we're going into a season

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um that artificial intelligence is going

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to move the needle against you from a

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life expectancy standpoint. What does

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that mean? Well, if if the if the

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projected life expectancy is longer for

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you because AI has got some medical

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breakthrough and you're projected to

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live longer, that means there's going to

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be more payments, which means those

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payments will be lower. If you lock in

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current life expectancy tables, you're

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going to lock in higher payments and

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you've transferred the risk to that

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company and that company has to honor

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those payments. Which leads to the final

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point I want to make.

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When we're looking at lifetime income

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with lifetime income types of annuities,

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income writers, QAX, DAS, SPAS, okay,

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these are lifetime income products.

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Okay,

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you you have to focus on the life

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expectancy now as compared to what's

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probably going to happen in the future.

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All right?

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It's worth you looking at. It's worth us

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having a conversation. It's worth at a

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minimum you going to my site and running

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quotes and then downloading my owner's

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manuals on single premium immediate

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annuities, deferred income annuities,

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qualified longevity annuity contracts,

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income writers. Get yourself educated.

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My YouTube channel, which you're

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probably on right now, um you can you

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can pull up videos there. I've done

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thousands and I'm going to do as many as

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I can until I die, okay? that are

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educational. And I think this video will

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be looked at in the in the future and

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they'll look back on and go, "My

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goodness, yeah, we probably should have

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looked at lifetime income to lock it in

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to get ahead of AI." So, a lot of people

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are worried about AI. How do you beat

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AI? How do you get ahead of AI? Lifetime

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Income right now because AI hasn't

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affected it. And the next word I'm going

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to say is very important yet.

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It will. You know it. I know it. I think

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the annuity industry knows it. They

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don't know what to do with it, but it's

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going to happen. So, artificial

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intelligence going to it will affect

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annuities. It's probably going to affect

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it in a broader sense just than just in

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addition to just lifetime income. But I

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think for the people watching this, it's

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lifetime income. It's all about that

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income floor, right? It's all about the

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income coming in or the income planned

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to come in or the income you're planning

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for your spouse or your kids to have.

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You can lock in those life expectancy

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tables. Now, [snorts] the key though is

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is with lifetime income and one more

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thing just hit me. With lifetime income,

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we marry M A R Y, not M R Y. M A R R Y.

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Zeke behind the camera. He's laughing.

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We marry the carrier for lifetime

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income. So that carrier has to be A+ or

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better. So A+ or A++ has to be A+ or

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better for lifetime income. So when

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we're looking at these products for

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lifetime income is going to be A+ or

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better because those A+ or better

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companies will be able to absorb the

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changes in the life expectancy tables.

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They have enough money. You can't bottom

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fish here cuz if we're getting ready to

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have life expectancy tables change that

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carrier that's on the hook to pay for as

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long as you are breathing they better be

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strong. Okay. So A+ or better Zeke A+ or

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better you don't need a sweater that

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rhymes. But in essence we're we're going

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to marry the lifetime income product.

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We're going to marry that carrier. And

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that carrier better be strong because

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they're going to have to back up the

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contractual guarantees that you signed

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before the AI affected everything. How

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about that? How about that whisbang of a

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topic? That's fun with annuities. That's

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fun and realities with annuities with

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me, Stan the Annuity Man, top

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independent agent in the country and

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also the tallest. Think about that. See

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you next time.