What Does Return of Premium Mean With Fixed Annuities?

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Hi there, Stan the Annuity Man,

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America's annuity agent, licensed in all

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50 states in Puerto Rico. Today's topic

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is what does return of premium mean with

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fixed annuities in the business we call

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RO, which stands [clears throat] for

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return of premium. I'm going to go over

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that because it's very important,

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especially when you're looking at

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lifetime income products and how it's

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structured. We're going to do that after

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this.

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So what does return of premium mean? Let

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me give you an example. With with single

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premium immediate annuities, deferred

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income annuities, and qualified

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longevity annuity contracts,

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there are times that you're deferring

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out. You're the income starts in a year

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or two years or three years or five

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years. And even with an immediate

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annuity, you can defer it for three

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months, six months, nine months, a year.

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So during that time period of deferral

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before the income starts is when the RO

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return of premium feature comes in and

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is very very important and what that

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means is

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it's contractual and you set it up at

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the time of application so that if you

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die before the income starts all of that

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money lump sum that you put into the

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SPAD or QAC goes 100% to the listed

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beneficiaries of the policy and the

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annuity company does not keep

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Because a lot of people out there under

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the misconception, well, when I I don't

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like annuities cuz when I die, nudity

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company keeps money. Well, that's

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stupid. Okay. Because we can structure

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once the payment starts, we can

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structure it called life with cash

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refund or life with installment refund

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or life with 20 years certain or

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whatever. So that the annuity company

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never keeps a penny under any

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circumstance. Yet, they're on the hook

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to pay for as long as you're breathing.

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And if it's joint life, for as long as

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both of you are breathing, one of you is

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breathing. No ROI until you die is the

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what I what I say.

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But return of premium is important if

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you're want to make sure that the money

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will be going to the beneficiaries if

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you die before the income starts. Now a

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lot of the Speedodia and QAC companies

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already build that in. It's already

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built into the policy. They already have

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a RO in there. I think that's smart from

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the carrier standpoint because if I'm an

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annuity buyer like you, I would assume

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that's the case,

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but you don't assume. All right. So, my

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team has all have all been instructed

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whether you do an online app or whether

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you do an app through through us humans,

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you can do both at my at my company.

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We're even with the online app, we're

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going to call and and make sure a couple

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of things and one of them is going to be

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return of premium.

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Okay. So, we're going to make sure the

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carrier that you choose has return of

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premium either built in. And if it does

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not have that, then we're going to add

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it after talking to you and you agree to

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that.

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But that's really what it comes down to

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with income writers attached to say

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index annuities. We don't care about the

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index annuity, just the income writer.

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The return of premium is the index

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annuity. So, there's no you have to

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worry about that. with multi-year

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guarantee annuities which are the

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annuity industry version of a CD. I mean

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there is return of premium because it's

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it's a CD. There's not what RO return of

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premium comes down to are those three

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what I call annuitized products.

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Annuitization is like visually ripping

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the knob off a water faucet and water's

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coming. In this case though it's income.

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You know once you annuitize something

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boom it's it's it's annuitized and the

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income's coming.

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But the RO applies to the time you buy

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it till the time the income starts. You

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get Do you understand? So if you bought

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an immediate annuity, you want it to

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start, you bought it today and you

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wanted it to start January 1st of the

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next year, then the RO would apply for

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that time period before January 1st.

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Okay? or if it's a qualified longevity

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annuity contract inside of an IRA and

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you're deferring till age 80 and you're

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73 right now. RO O is at seven years

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before the income starts

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or deferred income annuity which

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deferred income annuities are the same.

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QLAX just has to be used in IRA.

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Deferred income annuity starting in

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three years. The RO applies to from now

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when you bought it to to year three when

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it's turned on because once it's turned

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on we have put in place the guarantee on

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the back end the backs stop the death

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benefit if you wanted that. If you don't

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that's fine that's called life only. But

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we're going to ask you if you die do you

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want the money to go to your family?

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Yes. If you die before the income starts

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do you want your money to go to the

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family? S O P. the answer is yes, then

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we're going to put that in there.

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But very, very important, there's a lot

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of unfortunately.

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There's a lot of agents that don't even

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know what RP is. And and and maybe

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they're watching this, maybe, you know,

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maybe they are, but it's important.

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You've worked hard for this money. I

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call myself a 30-year overnight

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sensation. That's probably what you are,

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a 30-year overnight sensation. you

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scrimped and saved and did without and

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now you're at the end of of the the work

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time or whatever. You're at chapter two

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of your life. There's no mulligans on

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retirement choices. Okay? There's no

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doovers. You know, you don't want the

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annuity issued speed without an RO.

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I guess you're going to be dead and it

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won't matter, but your your

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beneficiaries will m they'll they'll be

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upset. I would too. So, it's important

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for you to know the the the small little

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nuance rules of how these things work.

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Obviously, we want you as a client.

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Obviously, I'd like to talk with you.

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Obviously, that's why I do these videos

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is to hopefully attract you to us from a

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trust standpoint and the fact that we

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know what we're doing. We do. I dove

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been doing it a long time. Who else

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would do a video on RO? I'm doing it

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because I don't want you to make a

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mistake and I want you to understand how

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this works. You can go to my site and

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you can download owner manuals on all of

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these products and I I cover it there.

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I've done zillions 2,000 plus videos

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that I've covered a lot of this stuff.

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But I keep wanting to come back and

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revisit it so that if someone is looking

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for an answer on return or premium RO,

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I'm there.

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They get it. You know, you can email me

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if you have another question

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standanuityman.com.

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You can also schedule a call with me as

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well. on my site, top right hand corner.

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Most likely you're going to get me. If

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you don't get me and you want me, demand

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me and I'll fit you into my schedule.

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Still own the company, my wife and I,

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it's a big company, biggest sellers of

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um fixed annuities on the planet

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representing all carriers, but we do it

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differently. We we only sell the

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contractual guarantees. We do not talk

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about hypotheticals or theoreticals. But

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when you're looking at lifetime income

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and you need to fill in that lifetime

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income floor, you know, go to my site,

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run anonymous quotes for SPSDS and QAX

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and income writers by just putting in

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your name, um, date of birth and state

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of residence. You're getting real quotes

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and if something looks good, you can do

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the online application or help us, uh,

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or you can or we can help you across the

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finish line and do it for you. But, um,

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just be aware RO O is that time period

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from the time you purchase it to the

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time the income starts.

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All right? Do me a favor. Spinning clock

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above me has a video about the

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technology that we're doing. It says,

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"Hey, Virtual Stanley lives." "Hey,

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Stan, who is Virtual Stanley?" If you go

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to my site, bottom righth hand corner,

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you're going to see a caricature of me

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that if you click it, you can ask

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questions. We are the first in the

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industry to have that. That is real.

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That has real answers coming from me.

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And it's from the 2,000 videos, the 400

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articles, and the um seven books I've

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written on annuities have all been fed

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into Virtual Stanley. and obviously he's

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he's gotten that information building

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upon it and getting very good but

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available 24/7 365. We're also the first

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to offer um online applications for

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SPSDS QX income writers and MAS. We do

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that. You know, we have to call you at

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the end just to make sure you're a real

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person, but you can fill out the

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application. It's encrypted and safe. Um

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obviously you can do the the uh the

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quotes online. Those are real quotes,

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but you can do them anonymously. You can

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check live rates anonymously. You can

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schedule a call with me if you want to

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talk to me. You can talk to my buddy

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Virtual Stanley. It's your call. Again,

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you can do online apps if you want to,

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or you can have us do the apps. It's

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your call. You can have us run this run

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the quotes for you if you can run them

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yourself anonymously. That's your call.

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What my uh new Google CEO is doing is

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very interesting. He is providing the

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on-ramp to technology, but the off-ramp

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to humans if you need it. Because I'm

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old school, you know, I I I don't I look

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at a computer and I worry about breaking

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it. He looks at a computer and and

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wonders how fast it can go, what we can

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get done. It's pretty interesting. But

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what I'm demanding is that for the

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people out there that don't want to use

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that, they can use us. I got the biggest

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staff. We still have humans, you know,

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but AI to us is, you know, actual

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individuals. It also can mean artificial

9:11
intelligence and it also can mean

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annuity innovation. And we lead in

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annuity innovation for sure. And we're

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just getting started. So hang in there

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with us. Um I hope you give us a chance

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to earn your business. I'd love to have

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you as a client. We have the best team

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in the business. But give us a shot.

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Please do. And I'll see you tomorrow

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because tomorrow I do another video.

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Okay. See you then.