The Encyclopedia to Selling Annuities

PRESENTING5 BenefitsThe words that follow briefly describe five benefits to owning a traditional fixed annuity, EIA, or variableannuity.As you review the five benefits, you’ll discover that an annuity can assist your clients in preparing for andduring retirement.Simplicity / Annuity Benefits“The first benefit of an annuity is that you can pay less income taxes.With the money in taxable alternatives, you must pay income taxes onthe earnings regardless whether you leave the earnings in or take theearnings out. With the annuity, you pay income taxes when you want to,when you take the earnings out.Therefore, the second benefit is that you can have more money with anannuity than with a taxable alternative. This can occur because earningsaccumulate 3 ways inside of an annuity. Earnings compounds on top ofprincipal, earnings compound on top of earnings, and, earningscompound on top of the dollars that you normally send to thegovernment in taxes."The third benefit is that you can have three ways to withdraw money.The first way is that you can take 10% of your annuity value out eachand every year. Your second way is by surrendering your annuity. And,if you surrender during the surrender charge period, there are surrendercharges. Your third way of withdrawing money is called annuitization.When you want monthly income, you can annuitize.(Continued next page)DISCLAIMERBank CDs are insured up to $100,000 by the FDIC and offer a fixed rate of return whereas both principal and yield of securities will fluctuatewith changes in market conditions. Other types of insurance products and investments, such as fixed or variable annuities,have earnings which are taxable upon withdrawal and if taken before age 59½ may be subject to a 10% Federal earlywithdrawal penalty.Variable annuities are sold by prospectus only. Prospectuses contain important information including risks, fees and expenses. All parties areurged to read the prospectus before investing or sending money. Variable annuities and their underlying investment options involve investmentrisk including possible loss of principal invested. Investment returns and principal value may fluctuate so that the investment, when redeemed,may be worth more or less than the original cost.FOR AGENT USE ONLY. NOT TO BE SHOWN OR DISTRIBUTED TO THE PUBLIC.24Copyright © 2004 W.V.H., Inc., San Diego, CA All Rights Reserved.This page cannot be copied, reproduced, duplicated in any form or manner.