What Is Annuity Protection And How Does It Work?

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So, Stan The Annuity Man, what is annuity protection? And how does it

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work? It's not that, 'cause I don't know what that was.

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Hi there. Stan The Annuity Man, America's annuity agent,

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licensed in all 50 states and Puerto Rico. Founder of Contractual Guarantees Only.

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I'm having fun. You know, people always say, "Stan, how many of these videos can you do?"

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One a day, forever. That's how many.

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But how does annuity protection work? I keep hearing,

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"Annuities are protection products." How do they protect me,

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son? I'm a big whopper out here. I need protection. I need lots of it. How do we do it?

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I'm gonna talk about that after this.

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So annuity protection really comes down to this. Life insurance companies issue annuities.

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Yes, it's true. And you're transferring the risk to the annuity company to do four primary things.

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The acronym is PILL.

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P, stands for principal protection, I, stands for income for life,

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L, stands for legacy, the other L, stands for long-term care.

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PILL: principal protection, income for life, legacy, long-term care.

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That's the protection that you're getting. You're transferring the risk.

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So that's the type of protection. If you're looking for that, let me give you an example.

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Social Security is the best inflation annuity on the planet.

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It gives you full protection from outliving your money.

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Smart people, fancy people, call it longevity risk, the fear of outliving your money.

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Lifetime income annuities, SPIAs, DIAs, QLACs, Income Riders,

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provide lifetime income as long as you're breathing and/or on a respirator.

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"But what if I'm in a coma? Like, let's just say I'm in a coma, and they got me on a respirator,

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and they're, like, sticking pins in my foot. I can't feel it."

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It's still gonna pay. It's still gonna pay.

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So there's no ROI until you die. That's protection for lifetime income.

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People say, "What's the ROI on that, son? I'm an investor player.

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I need to know what I'm getting."

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I don't know when you're gonna die. With artificial intelligence,

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you could live forever. I'm not saying it's gonna be a good lifestyle, but you could live forever.

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And if you're married, I'm betting on the female,

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probably gonna live into their 90s. And with AI, it could be longer.

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So life expectancy tables right now are great. Protection for lifetime income,

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great. Protection for the fear of outliving your money, great.

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So let's talk about principal protection, how that works.

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"Well, I don't wanna lose any money, son. I just want

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a guaranteed rate that's fair and contractual, like a CD, son."

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That's a multi-year guarantee annuity. That's what that is.

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It's the annuity industry's version of a CD.

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You might not need a lifetime income stream. You just might need to protect the principal and keep

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your powder dry. It's that Civil War talk behind the camera, see? Keep your powder dry, son. Okay?

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That's protection.

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You can also get protection for legacy.

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"Well, I can't really... You know, I went to the life insurance

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board down there, down the street the other day, said, 'I want a bunch of life insurance.'"

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And you found out that life insurance companies want to insure young,

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healthy people. They don't want you because you have had one or

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maybe two things happen, and you're on medication like the rest of us.

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So to get life insurance is a no-go.

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So annuities, guaranteed issue, can provide that type of legacy to your beneficiaries.

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You're saying, "Well, Stan, give me an example,

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and I want one about you, 'cause I don't really know you, Stan."

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That's true, you don't.

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My name is Stan The Annuity Man. Been married 37 years. I have two daughters,

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29 and 27. All are princesses, all live under the capitalism umbrella that I provide so lovingly.

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I'm a very bad parent because I don't want bootstraps in my

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family, so they don't have to pull themselves up from the bootstraps.

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Okay?

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But I have a quadrillion MYGAs. I mean, I'm Dr. MYGA. I believe in it. Guaranteed interest rate,

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tax-deferred growth, protection of principal, no fees. Hello. Hello.

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And for me, that's the lovely Christine walking to

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the bar 41 years ago. She was a MYGA in person. Okay?

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But here's the thing.

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Grow and compound, grow and compound, tax-deferred. Grow and compound,

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grow and compound, grow and compound, tax-deferred. Grow and compound,

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grow and compound, grow and compound, tax-deferred. Grow and compound.

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And guess who gets the tax bomb at the end? My lovely daughters.

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Who cares? I'll be dead.

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That's legacy to me.

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Deal with it, players. Deal with it. You'll be okay.

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That's legacy.

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Long-term care, once again, you know, long-term care companies wanna insure young,

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healthy people, not you that really needs long-term care,

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but there are annuities that are guaranteed issue that give long-term care.

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That's called protection.

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So I look at annuities as transfer-of-risk products and strategies, but they are

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protection products and strategies as well: protecting you from outliving your money,

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protecting you from losing a penny, protecting you from leaving money to

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your heirs and that money dwindling away, and protecting you from long-term care,

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'cause as we know, we're all gonna end up drooling in a cup and crapping in a diaper.

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It depends?

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You're right, it depends. It will be depends.

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So if you get the right mindset looking at annuities as they should be looked at,

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not as, "Potential hypothetical, man, I'm telling you right now,

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I'm gonna get market growth with that one right there, son, and an upfront bonus."

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No, you're not, player. You're the sucker at the table. You're the rube at the table.

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You're like playing cards in Vegas going, "I don't know who all these idiots here are."

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You're the idiot.

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Okay?

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If you bought it for that type of market growth, bonus,

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market upside with no downside, all that stuff, you're the idiot. And you found that out.

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I have conversations every single day with people.

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"Well, I bought that one with the 47% upfront bonus, owned it for three years."

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I'm like, "How's the growth on that, Chester?"

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"Not too good."

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Yep, you think?

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Buy contractual guarantees. Protect yourself using

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contractual guarantees. Transfer the risk using contractual guarantees.

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Why?

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Because life insurance companies issue annuities, and they issue those annuities in contract form.

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So why not, let's just stay right there and make our decision on the contract.

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What do you think? Huh?

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Hey, do me a favor. Shoot me an email if you wanna talk to me, [email protected].

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You can go to my site at theannuityman.com.

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You can do book a call, buy now, whatever button. It's probably gonna come to me.

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If it's not, and you get someone on the phone,

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say, "I wanna talk to Stan, son. Don't be playing with me."

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They'll get you to me. Okay?

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My schedule is rather full. But I do wanna talk to you if you wanna talk to me.

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And I'm a little out there, but I'm factually brutal. You know,

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I'm not gonna fluff anything as you can only imagine.

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One last thing.

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Above my head,

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I did a video on the commoditization of annuities. Annuities are a commodity.

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Everybody's out there going, "Well, I've looked at all the annuities, and this is the best one."

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Translation: it's the best one for the agent, and if they sell enough on it,

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they get to go on a trip to Bora Bora with their girlfriend, boyfriend,

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husband, wife, whatever applies, or all of them.

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There is no one best.

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Nobody's done an announcement and gone, "This is the best one. I'm telling you right now."

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No. No, no, no.

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We quote all carriers for the highest contractual guarantee for your specific,

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specific, not pacific, Dr. V from Venezuela sitting over there, your specific situation.

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Okay? Good.

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Hey, you know, these videos are cathartic.

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It'd be cool if I could lose weight doing them, but I don't,

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because I eat all this crap stuff that they bring. Doc, you know,

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Big C behind the camera brings cakes and cookies, and he knows, he knows.

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Listen, stay tuned for the next video from Stan The Annuity Man.