What Is Annuity Principal Protection?

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

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camera said, "This shirt is the winner of all the crazy shirts that I have." Great story

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on this, Dr. V. And for the people out there, walking through New York City one day and

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I just did, I think, CNBC or Fox Business or something, and somebody was selling this

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where they could take your face, and back then I had this Game of Thrones look, and so they

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superimposed it on the shirt, and then on the back I put, like, annuity man fighting annuity evil,

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and then I just wore it around New York the whole time. Oh my gosh. So, story of my life,

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Dr. V. It's kind of weird, you know, and also, you know, I was a lot

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skinnier then. I look like a sausage casing in this damn thing right now, which isn't good,

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you know? But then again, I'm under the Jimmy Dean sausage plan, which means that Jimmy Dean's dead,

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but they sell a lot of sausage. And, you know, our continuation plan at the annuity man

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involves me not being around, but the train's rolling, baby. I mean, the train.

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You know what you're saying, Stan? You look vibrant. You never know. You never know. I

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was driving on I-95 the other day, and if you've been there in Florida, I mean,

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your life's in danger all the time. So, the question of the day that we're going

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to talk about is, what does principal protection mean with annuities? You know, what does that

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mean? It actually can mean a myriad of things, of which we're going to talk about after this.

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Alright, so, don't be distracted. Do not look here. Do not look here. See, you're looking now.

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Alright, annuity principal protection. Let's talk about it in a couple angles. Number one,

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there is such a thing that, hey, Stan, I don't want to lose a penny. I want access to the money.

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And eventually, if I want it all back, I can get it all back. Okay? That's a multi-year

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guarantee annuity, which is the annuity industry version of a CD, just a fixed rate annually. It

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also can be a fixed index annuity, which is a CD product. Yes, index annuities are CD products, not

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market products. Fully principal protected. Alright, that's what that means. So, if you say, I

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do not want to ever lose a penny, I do not want to ever pay a fee, if you bought those two products

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as standalones— now, fixed index annuities can have income riders on top of them, but that's not what

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we're talking about right now. We're talking about just full principal protection. Those two

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products, those two fixed products, can do that. So that means principal protection on that side.

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But on lifetime income products, you can also do principal protection. And lifetime incomes

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are SPIAs, QLACs, Income Riders. And you can go to my site at theannuityman.com,

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and you can quote to your heart's content till the cows come home, quotes on your specific situation.

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Put on your actual date of birth because they, you know, don't play games. You know,

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we're not keeping that information. We we're not selling it. You know, it's confidential. But

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annuity companies are, you know, pricing that lifetime income on your life expectancy to the

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day. So, put in your date of birth. But principal protection on lifetime

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income is there as well. Now, a lot of people out there are going, "That's not true. When you die,

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when you buy an immediate annuity, when you die, the annuity company keeps the money.

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They keep the money. Money goes poof." Please stop talking. If you believe that, just please

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stop talking. Okay? That's called life only. But 99.9% of the people don't do it that way.

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To fully protect your principal, meaning that regardless of how long you live,

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or if it's joint life, regardless of how long you or your spouse lives, because the income

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continues uninterrupted and unchanged as long as one of you is breathing— for as long as

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you're on a respirator in a coma, it's going to pay. Okay? We can set it up so that 100% of any

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unused money goes to your listed beneficiaries of the policy. Tell me more, Stan. Tell me more. I

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know. Don't look at this. Do not look at this. The way that works: cash refund or installment

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refund. So, life or joint life with cash refund. Life or joint life with installment

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refund. Cash refund means when you die, if it's joint, the second person dies,

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100% of any unused money goes to the beneficiaries, and the evil annuity

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company never keeps a penny. We clear? Good. Life or joint life with installment refund

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means that if it's joint life, when the second person dies and stops breathing,

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the payments that were being made are made to the beneficiaries until the money's gone. I call that

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lovingly handcuffing your beneficiaries. So, life or joint life with cash refund,

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life or joint life with installment refund, both protect the principal. You say, well,

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I'm kind of getting my money back with interest on that. Yes, you are. But if you put— throwing a

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number out— if you put a half million dollars into an immediate annuity, we can structure it so that

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if you die day two, 100% of that unused money goes to the beneficiaries. If you died day 300,

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100% of the money goes to beneficiaries. Bottom line is, don't believe the crap,

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delusional misconception of, you know, annuity company keeps the money. That's crap. That is

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absolute crap. Can you structure it like that if you're a flat-out sociopath, misanthrope,

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and hate your beneficiaries? Yes, you can. But do people do that? Most people do not do that. Some

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do, but most people do not. Most people structure it so that that principal amount that you put in,

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that you gave to the annuity company and transferred risk for lifetime income,

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that is intact for you and your family. If you live forever and draw it down to zero,

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the annuity company's still on the hook to pay. If you lived 125, paying. If you lived 150,

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paying. If you're on a respirator, 160, paying. But what I want to drive home to you is there's

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two types of principal protection. MYGA, index annuity, fixed annuity, principal protection— never

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going to lose a penny, never going to pay a fee. Income annuities, lifetime income annuities— we

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can structure it so that 100% of the money is either going to go to you, if it's joint, you

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and your spouse, and to the beneficiaries if you die early in the policy, if you do not exceed your

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projected life expectancy. I think that's great. I mean, think about this. You're saying to XYZ,

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A++ company— I'm not going to mention the names because we represent them all. And

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the second I mention the name, the other ones are going to say, "Mention our name,

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too." We represent them all. I mean, they are on the hook to pay for as long as you're breathing.

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But you have the peace of mind knowing that if you die early, money goes to the beneficiaries,

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and the annuity company doesn't keep a penny. And with lifetime income, A+ or better. No

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exceptions for lifetime income. A+ or better. And if anyone's pitching some lower-rated company for

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lifetime income, I don't know why you would do that. Why would you put your lifetime income

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at risk? With A+, it's not at risk. What happens A+ goes up? We're screwed. I mean,

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as a country, it's a wrap. We're screwed. So, principal protection exists in the space of a

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CD-type investment, okay? Which is MYGAs and index annuities without the income rider. Just MYGAs,

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index annuity standalone. And it also exists contractually on the lifetime income side

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if we structure it the right way. Okay? Do me a favor. Go to my site at

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theannuityman.com, run quotes, download the owner's manuals,

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watch videos, schedule a free consultation, or you could contact me, [email protected].

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[email protected], that's my email, and I do check that email seven days a week,

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and I will get back to you personally. That is coming from me. Someone said the other day,

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"Did you email that or your assistant?" Now, I do have an executive assistant, but the emails,

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I deal with because it's you and it's your money, and it's important, and I still own the company.

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Do me one more favor. Above my head, it's a video I did on lifetime income. It talks about

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life expectancy driving the train. It also talks about how rates do play a minor role. It talks

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about how that's priced, the tranches, and all of that stuff. It's very important for

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you to understand that. And I believe right now lifetime income is a bargain because artificial

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intelligence is getting ready to change the game on life expectancy. It's going to lengthen

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it out. So, I think it's a bargain right now. So, with that being said, I'll see you next time.