If you were to name the most discussed but underutilized idea in the life insurance industry, I think it would be the annuity arbitrage. In essence, you purchase an immediate annuity and use the payout to purchase another product, like life insurance or long-term care.
With low interest rates, many people don’t see the benefit of annuity arbitrage. But, today is the absolute best time to take advantage of this strategy. Here are three reasons why:
At the end of the day, annuity arbitrage makes sense in many situations – not all situations. We have a lot of assets on the books of insurance carriers that aren’t being used for their full purpose. I encourage you to evaluate your book of business to see if there are assets available to pay for protection products in an efficient manner.
Look to understand the value of annuitization in today’s environment. Avoid the myths and focus on the facts.
As our population continues to age, risks increase due to longevity. And, longevity is the greatest multiplier of all the retirement risks. Join us along with Tim Ash as we tackle the opportunity in retirement!Register Now
About the Author
Mike McGlothlin is a team leader, retirement industry activist and disciple of Indiana Hoosier basketball. In addition to being EVP of retirement at Ash Brokerage, he is a sought-after writer and speaker. His web series, “Winning Strategies,” provides insight and motivation for financial advisors in many forms – blogs, books, videos, podcasts and more. You can get his latest book, “Winning Strategies: The New Rules of Retirement Planning,” on Amazon.
© 2018 Ash Brokerage LLC.