FSD A FIXED ONLY INSURANCE IMO - MARKETING FIA's SINCE 1996

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FIXED INDEXED ANNUITIES ARE INSURANCE PRODUCTS FOR LIFE LICENSED AGENTS

FSD's Marketing Approach To FIA's:

  • FSD approaches FIA's with a traditional view of simplicity and guarantees. Utilizing crediting methods that have historically performed well has been a successful long term strategy. Many of today's FIA's have drifted from the simple and traditional crediting methods in the original designs to more complex and assumption based models.
  • Highlight the guarantees and Illustrate the potential. The strongest guarantees in a fixed annuity are the minimum guarantees. Clients who understand the difference will never be surprised by the performance. No surprises will equal higher satisfaction.

  Common misconceptions regarding FIA's:

  • A securities license is required to sell FIA's: (this has never been the case, a Life Agent Only license is all that has been needed since inception)
  • FSD Financial does not offer FIA's: (actually we have been involved so long we have experienced the EIA-FIA evolution. From limited availability, through 151a, and the entire DOL to date. We know the performance history, have seen the cap and spread renewals over time and the satisfaction levels associate with all these aspects. FSD's experience in the FIA marketplace guides our marketing today. It is our conclusion that most FIA's do not meet our standards of competitiveness and guarantees for the risk averse client.  
  • Premium bonuses can offsets surrender charges: (This is a very short sided view of a long term product. A bonus is really just an advance on future earnings. Bonus products historically have lower renewal rates and longer surrender charge terms giving the carrier plenty of time to adjust as they see fit. If a client is in such bad shape, the new products guaranteed rates must be make the case and any additional gain above these guarantees would just be gravy.)

Fixed Indexed Annuity Product

FIA with 5, 7 and 10 Year Surrender Terms To Choose From:

  • S&P 500 index interest crediting options:
    Annual point-to-point with cap rate:

    - 5 Year: 5.50% Cap ($100,000+ Initial Premium) and 5.25% Cap ($15,000 - $99,999 Initial Premium)
    - 7 Year: 6.00% Cap ($100,000+ Initial Premium) and 5.75% Cap ($15,000 - $99,999 Initial Premium)
    - 10 Year: 6.25% Cap ($100,000+ Initial Premium) and 6.00% Cap ($15,000 - $99,999 Initial Premium)
    Annual point-to-point with participation rate:
    - 5 Year
    : 44% ($100,000+) and 42% ($15,000 - $99,999 Initial Premium)
    - 7 Year: 49% ($100,000+) and 47% ($15,000 - $99,999 Initial Premium)
    - 10 Year: 50% ($100,000) and 48% ($15,000 - $99,999 Initial Premium)
    Fixed interest with one-year rate guarantee period:
    - 5 Year Term:
    2.00%
    - 7 Year Term: 2.00%
    - 10 Year Term: 2.00%
  • Issue Age:
    - 5 Year Term:
    Issue to age 93*
    - 7 Year Term: Issue to age 90
    - 10 Year Term: Issue to age 80
  • Guaranteed minimum accumulation benefit (GMAB):
    - 5 Year Term: 105% of net premium after 5 years
    - 7 Year Term: 107% of net premium after 7 years
    - 10 Year Term: 110% of net premium after 10 years
  • Minimum / Maximum Premiums:
    $15,000 to $1,000,000 initial premium
    Additional premium accepted in first 90 days 
  • Surrender Charge Period - Choice of 5, 7 or 10-year term:
    - 5 Year Term: 9.4%, 8.5%, 7.5%, 6.5%, 5.5%, 0.0% Thereafter
    - 7 Year Term: 9.4%, 8.5%, 7.5%, 6.5%, 5.5%, 4.5%, 3.5%, 0.0% Thereafter
    - 10 Year Term: 9.4%, 8.5%, 7.5%, 6.5%, 5.5%, 4.5%, 3.5%, 2.5%, 1.5%, 0.5%, 0.0% Thereafter
    MVA +/- during surrender term
  • Free withdrawal options waiver of surrender: **
    10% annual withdrawals
    IRS Required minimum distributions
    Terminal conditions with partial index credit available
    Nursing home residency with partial index credit available
    Death of Owner with partial index credit available
    Death of Annuitant
    Annuitization with partial index credit available
    No annual contract fees
  • Commissions by age:
    - 5 Year Term: 3.00% (0-80)  1.50% (81-85) 1.35% (86-90) 1.35% (91-93)
    - 7 Year Term: 4.00% (0-80) 2.00% (81-85) 1.45% (86-90)
    - 10 Year Term: 5.00% (0-80)
  • Company Ratings:
    "A" Rated By A.M. Best 
  • Specimen Contracts:
    - 5 Year Term:
    - 7 Year Term:
    - 10 Year Term
  • Brochure
    Agent | Client


* The purchase of the annuity for those age 91-93 must be for transfer-of-wealth or estate-planning purposes.

** Applies after the first contract year.

"A+" Fixed Indexed Annuity Product

"A+" Rated Carrier - Fixed Indexed Annuity

Short Term Indexed Annuity

Rates:

  Fixed Account:

  • 2.95% ($100,000+) - 2.50% ($10,000 - $99,999)

   1-Year Volatility Controlled Pt-to-Pt Indexed:

  • 1.20 Spread ($100,000+) - 1.40% Spread ($10,000 - $99,999)

   1-Year Performance Triggered Indexed:

  • 4.50% Cap ($100,000+) - 4.00% Cap ($10,000 - $99,999)

   1-Year Point-to-Point Indexed:

  • 6.25% Cap ($100,000+) - 5.30% Cap ($10,000 - $99,999)

Issue ages:

  • 0 – 85, non-qualified and qualified

Available markets

  • Non-qualified, qualified (IRA and Roth IRA)

Minimum initial premium

  • $10,000 non-qualified and qualified
  • Maximum premium (without approval) $2,000,000

Additional premiums:

  • Additional premiums are applied to the Fixed Account & subject to a $50 minimum. Carrier has the right to limit additional premiums to $25,000 each contract year. 

Surrender charge period: 5 Years

  • 9.00%, 8.00%, 7.00%, 6.00%, 5.00%, 0.00%
  • California: 9.25%, 8.25%, 7.25%, 6.25%, 5.20%, 0.00%

Commission: 

  • 2.70% (0-74)
  • 2.20% (75-79)
  • 1.20% (80-84)
  • 0.50% (85)