| Annuity Purchase Program
The Annuity Purchase Program enables
you to help clients whose financial
picture has changed since they bought an
annuity. Estate planning, investment
goals, or life changes can cause clients
to rethink the strategy behind their
annuity investments. The Annuity Purchase
Program from J.G. Wentworth enables
annuity owners to sell 'some' or all of
their annuity values for cash.
The Annuity Purchase Program is an
ideal consideration when you have
cash-poor clients stuck with annuities
that they cannot liquidate. Suitable
candidates for this program include the
following:
- Owners of immediate annuities; or
- Owners of deferred annuities with
excessive surrender charges; or
- Owners of deferred annuities that
must be annuitized (aka
"Two-Tiered Annuities); or
- Beneficiaries of annuities who are
forced to take a 5-year death payout
What's even more exciting is that
annuity owners don't have to sell all of
their annuity. Perhaps you have a client
who purchased a Life with 20-Year Period
Certain Immediate Annuity with $1,000,000.
The annuity generates $6,554 per month in
benefits. Your client has decided he'd
like to start up his own business and will
require $107,000. By selling $2,261 of his
$6,554 annuity benefit for just 5-years,
the Annuity Purchase Program can provide
your client with the $107,000 needed. Then
after 5 years, his benefit is restored to
the full $6,554.
There are only two prerequisites for
the Annuity Purchase Program. First,
annuities must have a non-qualified tax
status. And second, contracts that have
been annuitized for LIFE Only (without
Period Certain) cannot be sold. If you're
looking to sell a deferred annuity that
required annuitization, there's one other
caveat. In order to fetch a fair price,
the deferred annuity should be capable of
being annuitized.
At NEB, we're pleased to bring you
innovative programs like The Annuity
Purchase Program. If you'd like to get a
quote, just download the Quote Request
Form and fax it back to us. If you're
requesting a quote for an immediate
annuity, turnaround time is within hours.
For deferred annuities, we will need a
copy of the policy.
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