How Will AI Affect Annuities?: Fun With Annuities (Encore Presentation)

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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 just going to always

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say, "Well, AI is horrible. It's going

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to put people out of work." That all

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might be true. I'm not smart enough to

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discern any of that. But let's talk

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about the way that I think it's going to

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affect annuitities in the annuity space.

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First of all, AI is pos there's

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positives and negatives. We all can

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agree with that. However you use it, if

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you type in into a search bar now, AI

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just pops up. It's like they're all

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knowing, all seeing, whatever. But I

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think from an annuity standpoint, what

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we have to look at

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AI 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 the

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shake and said, "I remember when there

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was no cable television. I remember when

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there was only four channels. I remember

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the first laptop. I had one. It was from

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Dell. Um, this is this is the bluewater

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wild west of AI. Now, how does that

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affect annuities and your decision?" And

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before I even start in, this is not a

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sales pitch, okay? You know me better

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than that. You know, we don't do that.

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We don't do high pressure selling. We

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don't do outbound phone calls unless you

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schedule a call with us. Okay? Uh we're

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not hammers looking for nails. Um but I

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really think at this time that the life

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expectancy longevity tables are in your

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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

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the opportunity is to lock it in now.

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You're locking in life expectancy tables

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now 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

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be wrong about this, but I don't think

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so. I think we're going to look up down

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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, but that's

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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, what are you what are you what

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are you doing? You can't depend on

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social 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 run quotes

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24/7, 365 and no one will call you. No

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one will pick up the phone and call you.

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No 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 it. You know, we're going

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to have to probably do some nuclear

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stuff to to power the a the the memory

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and the the computers. And I know that

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sound really technical, but you know

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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 prof

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profession. It's going to affect medical

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research. It's going to shorten the

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curve on on that research, which in

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essence is going to there's going to be

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more breakthroughs medically in your

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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 expecties longer for you

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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 gonna do as many as I

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can till 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 gonna

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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 plan to

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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, the key though is is with

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lifetime income, and one more thing just

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hit me. With lifetime income, we marry

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M- A R Y, not M R Y. M A R R Y. Zeke

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behind the camera, he's laughing. We

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marry the carrier for lifetime income.

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So that carrier has to be A+ or better.

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

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lifetime income. So when we're looking

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at these products for lifetime income,

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it's going to be A+ or better because

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those A+ or better companies will be

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able to absorb the changes in the life

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expectancy tables. They have enough

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money. You can't bottom fish here cuz if

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we're getting ready to have life

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expectancy tables change that carrier

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that's on the hook to pay for as long as

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you are breathing they better be strong.

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

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You don't need a sweater. That rhymes.

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But in essence we're we're going to

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marry the lifetime income product. We're

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going to marry that carrier. And that

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carrier better be strong because they're

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going to have to back up the contractual

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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

10:01
fun and realities with annuities with

10:03
me, Stan the Annuity Man, top

10:05
independent agent in the country and

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also the tallest. Think about that. See

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you next