When An Annuity Is Written, Whose Life Expectancy Is Taken?

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Hi there, Stan, the annuity man, America's annuity agent, licensed in all 50 states and Puerto Rico. Today's topic's a interesting one. Is when a when an annuity policy is written, whose life ex- for lifetime income, whose life expectancy is the focus? Good question. And I'm

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going to go into detail of how that all works after this. Okay. Lifetime income is one of the

0:30How Annuities Provide Lifetime Income

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biggest reasons people buy annuities. Annuities as a category, the only category that can provide lifetime income for as long as you're breathing. As I say, there's no ROI until you die. If you're on a respirator in a coma, it's going to pay as long as you're breathing.

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The other thing that I tell people, lifetime income is primarily based on your life expectancy or joint life expectancy's at the time you take the payment. And you've been trained for this. Social Security is the best inflation annuity on the planet.

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When you're 70, it's you know, that's the highest payment as opposed to if you took it at 65. Because you're younger. It's really that simple. It's all about life expectancy. So, what I tell people is you have to figure out the break-even point for the

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5-year, 60 months of payments you missed to wait to get to 70 see if it makes sense. My opinion, yeah, I'd like for you to

1:31Key Consideration About Retirement

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probably consider turning on sooner just to enjoy the money. There's three phases of retirement: go-go, slow-go, and no-go. And if you're in go-go, you know, use it cuz no-go means we're drooling on ourselves and wearing a diaper. My dad, baddest dude on the planet, meanest dude

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on the planet, toughest dude on the planet, didn't take any but you know, no pun intended, at the end he was wearing a diaper. 82. If we get there, we get there, and there's nothing to do. There's a lot of people that call me all the time and say, "Man, I really wish I'd have taken

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your advice and and spent the money or or learned how to spend money. A lot of you have scrimped and saved and threaded the needle needle and you're still on the budget and you still have IRS living in your head and Aunt Irma is living in your head and you go,

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"Hey, you know, I'm like, hey, who cares? Go live your life." But, life expectancy drives the

2:28Why Lifetime Income Is A Bargain Right Now

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training. Currently, at the time of this taping, check the date, life expectancy tables are in your favor. It's a bargain. These are legacy life life lifetime income table tables and life expectancy tables. In the very very near future, I wish I could predict it, but I can't,

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artificial intelligence is going to majorly shorten the medical breakthroughs, which is going to prove to the life insurance companies that you're going to live longer, which means the payments will be more, which means the payments will be lower. That's not a That's not a urgent pound

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the table for you to buy lifetime income now, but it is food for thought. Now, when it comes to life expectancy, let's talk about

3:09Different Ways To Structure Annuities

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Let's talk about one thing. Most people think that when you buy an annuity for lifetime income, and there's four types, SPIAs, DIAs, QLACs, and income riders, but if you buy an uh annuity for lifetime income and the bus hits you day two, money goes poof, that's not true. Okay?

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We can structure it and put a backstop in there so that 100% of your money either goes to you or your family. If the account draws down to zero and you're still alive, they're going to pay. That's the value proposition, right? You're transferring the risk,

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the longevity risk for the annuity company to pay. But, let's let's look at

3:41How Lifetime Income Payments Are Calculated

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the example of this question. You know, what who do they focus on? Who does the life insurance company that issue issues the annuity focus on? Let's just say it's you, male, and your wife, female. They're always going to be looking at your wife. You can call it an evil

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conspiracy if you want to, but females tend to outlive males. So, life insurance companies issuing annuities are going to focus on the female when it's joint life. What's a higher payment, single life or joint life? Single life. They're They're insuring

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one life. That makes sense. So, joint life is going to be a lower payment. And typically, they're going to focus on on your wife if she is um younger. And actually, even if she's the same age, they're going to focus on her in most cases cuz her projected life expectancy is longer.

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So, you're taking that bet. I tell all the married people out there, I've been married to the the queen for 38 years, and everything that we have in the future is joint. And I And I encourage you males out there, don't thread the needle, etc. Make it joint life so that when you die,

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the income continues uninterrupted and unchanged. One thing you really need to

4:59Key Tip To Remember For Continuous Payments

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know, some Some guy called me the other day, he goes, "Well, here's what I want to do, Stan. I've done my research. I want me one to be on me with the wife as beneficiary." And I said, "You do understand she's not going to get the continuation of the income." He thought that was the

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case. He thought, "If she's the beneficiary and he die, the income continues." No, no, no. No, no, no. She has to be joint, what they call annuitant, which means in English, who the payments are based on. She has to be one of those. She can't be the beneficiary. If she's the

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beneficiary and you set it up, say, life your life with cash refund, she gets what's left over. She doesn't get the continuation of the payments. Don't believe me? Go to my site, download my SPIA owner's manual, read it for yourself. Better off just to save time, listen to me now.

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One of the things I'd like for you to do

5:52Reach Out To Us

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is email me [email protected] or go to my site, schedule call, demand to talk to me if you want me. I mean, you can talk to my team. They're all licensed in all 50 states and not on commission and based in Vegas. By the way, we're open 12 hours a day, 8:30 to 8:30

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Eastern and then 8 hours on Saturday. So, 68 hours a week, unmatched in our industry. We have the most staff not because I like to pay payroll, but I want people to be available for my clients. We have huge client base and we want you as a client if you're not a

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client already. But, the question was

6:25Basis for Lifetime Income Annuities

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like who's it based on? Who Who are the Who's the life insurance company looking at? Well, if it's just single life, they're looking at you. But, if it's joint life, say with a spouse and the spouse is wife, they're looking at the wife. Or let's say they're looking at the

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younger age and primarily basing it on their age even though it's for two lives in a joint scenario. You can go to my site,

6:51Next Steps and Helpful Resources

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run those quotes 24/7 365 on our calculators, best in the business. Best in the business. And we got some We're always refreshing things, so you you keep coming back and seeing better things cuz I'm always thinking about if I'm you, how do I want to look? If I'm

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you, how do I want to view it? I think I just touched my mic, sorry about that. If I'm you, um what would make it easier? We want you as a client, but we're not a hammer looking for a nail. You know, we want you to make your decision, an informed one, on your terms

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and on your time frame. Don't believe us, try us. We're not We're not that high-pressure person. Do me one last favor. Above me, there's a spinning clock. I did a I did a video on inflation and how annuities properly can properly address inflation,

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not some sales pitch non-guaranteed BS agent stuff at the seminar. I'm talking about how you really do it. Kind of a math geek. I come from Morgan's Morgan Stanley Dean Witter Paine Webber UBS. I I get it. I understand how this all works. Been doing it for a long time.

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Top agent out here. That's not me flexing, that's just me saying I know what I'm doing. Watch that video for inflation. You'll learn something and you won't make mistakes. All right? My name is Stan the Annuity Man. See you next time.