VA's for people under 45

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snaggletooth's picture
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Joined: 2007-07-13

I've been using a lot of the Pru VA, but clients must be 45 or older.  Just had a 43 year old client laid off today, any thoughts on what VA you would use if they want something with a guarantee behind it?
 
Only thing I can think of is JNL's GMWB, 7% simple, not sure if it's quarterly or annual ratchet now.
 
Anything else? 

chief123's picture
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Joined: 2008-10-28

Why not just use a fixed for 3 years, then move to Pru

snaggletooth's picture
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Joined: 2007-07-13

chief123 wrote:Why not just use a fixed for 3 years, then move to Pru
 
Who knows what the guarantees will be then?  Could be better, could be worse.  I'm not attached to Pru in any way other than I think it's the best VA out there for deferring income if you are older than 45.

Mike Damone's picture
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Joined: 2004-12-01

Why not JNL with an autoguard rider or Metlife or Paclife with a GMIB.

jamesbond's picture
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Joined: 2005-03-21

dont tie it up until he finds another job. Chances are he may have to tap the money if he is unemployed for a while

HymanRoth's picture
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Joined: 2008-08-25

BioFreeze wrote:I would use an Allianz index annuity. well there's a news flash

Lew Ashby's picture
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Joined: 2009-01-13

Last day to issue Pru HD7 is August 21.  Looks like they underpriced their HD7 living bene, so they're going to HD6 and raising rider cost.
 
LA

ManOnTheCouch's picture
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Joined: 2009-02-03

BioFreeze wrote: snaggletooth wrote:I've been using a lot of the Pru VA, but clients must be 45 or older.  Just had a 43 year old client laid off today, any thoughts on what VA you would use if they want something with a guarantee behind it?
 
Only thing I can think of is JNL's GMWB, 7% simple, not sure if it's quarterly or annual ratchet now.
 
Anything else? I would use an Allianz index annuity.
 
Not a bad call.  Indexed annuities have much higher rider rates than VA's due to less risk to the principal and lower expenses.  I like RBC's 8% rider.  BPA also has an even higher rider rate and their products function much more like a VA.

snaggletooth's picture
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Joined: 2007-07-13

ManOnTheCouch wrote:BioFreeze wrote: snaggletooth wrote:I've been using a lot of the Pru VA, but clients must be 45 or older.  Just had a 43 year old client laid off today, any thoughts on what VA you would use if they want something with a guarantee behind it?
 
Only thing I can think of is JNL's GMWB, 7% simple, not sure if it's quarterly or annual ratchet now.
 
Anything else? I would use an Allianz index annuity.
 
Not a bad call.  Indexed annuities have much higher rider rates than VA's due to less risk to the principal and lower expenses.  I like RBC's 8% rider.  BPA also has an even higher rider rate and their products function much more like a VA.
 
Not in my state.  I don't get any of that cool stuff here.  I did get some of my out of state clients some nice FIA riders though.

snaggletooth's picture
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Joined: 2007-07-13

Mike Damone wrote:Why not JNL with an autoguard rider or Metlife or Paclife with a GMIB.
 
Mike, I called JNL today.  I can't do the Freedom GMWB because the guy isn't 45...I didn't think there were age restrictions...I was wrong.
So, JNL's Autoguard 5 rider is the best I can do.  It's a return of premium rider with an annual ratchet.  If the GMWB is around in 2 years, I can upgrade into it.
 
So the question is, do I do the JNL autoguard and possibly switch in 2 years, or do I invest moderately and reassess in two years?
 
My fear is that we do the Autoguard and in two years JNL says we don't allow you to switch anymore.  What say any of you? 

Mike Damone's picture
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Joined: 2004-12-01

Like I said, I think JNL with the autoguard rider would be a suitable pick or use a different company with a GMIB rider.

Sutdawg's picture
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Joined: 2009-04-09

You can use Metlife's GMIB with a 5% roll-up on the downside and an annual ratchet on the upside. The roll-up contnies until age 90 and you can add a death benefit that mirrors the 5% roll-up so it works (in essence) like a 5% coupon bond witth a death put.

Sutdawg's picture
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Joined: 2009-04-09

Also, JNL has filed to go down to 6% simple and annual ratchet. Change is coming sometime in Spet although no one at JNL will admit to it. However, it is on file at the SEC..That's on their Lifeguard Freedom GWB...Just an FYI

Sutdawg's picture
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Joined: 2009-04-09

It is 6% and an annual ratchet instead of the current quarterly ratchet

Takingnames's picture
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Joined: 2007-11-09

Depending on the account size, if it is at least 100k, why not try a split ticket and use the AXA Accumulator elite.
You can take advantage of different riders that way.
 

Sutdawg's picture
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Joined: 2009-04-09

With AXA, it will depend on when you need the income (No income before 5 years without prorata reduction)...Since it will be over 5 years, AXA would fit too but their allocation selection isn't stellar

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