Have you ever been meeting with a client when they ask you about annuities, but you don't know where to begin quoting one? Well have no fear, follow these steps and you'll be quoting one of our amazing annuities in no time!
First, you will need to make your way into the Illustration System just as you would for any other quote. We have three fixed annuities, GrowthTrack, SecurityTrack, and the SelecTrack series. There is also one immediate annuity, the Single Premium Immediate Annuity (SPIA). If you need help deciding which product best suits your client, check out our Product Guide, located in the Product Portfolio. Once you have decided on a product, go ahead and select it from the products drop-down in the Illustration System.
Next, you will need to select whether the annuity will be Qualified or Non-Qualified. If you are unsure, please consult a tax advisor to find out which one to choose.
Now, you need to enter the client information. If this is going to be a joint policy, simply hit Annuitant 2 to add the second client. If you have two annuitants and need to remove one, click on the minus button in the red box next to Annuitant 2, as shown below.
You will want to notice that there is less client information collected for annuities than life products. That is because annuities are issued without a risk class, meaning all that is needed is an age/date of birth and gender to do your quote.
Next, you will need to make sure that your premium schedule is set up correctly, give your specific product. Each of product has a different minimum premium amount so you will want to check out the Product Guide, located in the Product Portfolio, if you have any questions about the different product minimums.
You should now be ready to add different payout options to the illustration.
In the drop-down, there are 5 payout options if you have just a single annuitant, and only 2 options if you have a joint case.
For more information about what these payout options are, please refer to the Product Portfolio. To remove a payout, you will hit the red button with a minus, similar to how you remove an extra annuitant.
If your client wishes to see any sort of income in the illustration, you can add that by hitting the Add Withdrawal button, shown below.
Withdrawals are a little more straight forward than payout amount. Each one withdrawal has a start year, a duration (how many years the withdrawals will last for), and a withdrawal amount. If you accidentally add too many, hit the little red circle with a minus in it to remove the desired withdrawal.
Please note that there is a key difference between adding payout options and doing a withdrawal. Adding a payout to an annuity will show the premium paid out if all of the cash value was transferred into a SPIA while a withdrawal shows money being taken out of the cash value directly. Withdrawals are only available on our fixed annuities.
If doing a quote on one of our fixed annuities, the last thing to do before illustrating is take a look at the Riders section. For these products, there are two riders available. One is the Nursing Home Waiver (NHW), which is required on all fixed annuities so you will not be able to uncheck it. The other is the Lifetime Income Rider (LIR), which is a little more complex and requires certain sections to be filled out. For single annuitants, you will need to decide an age for the income payments to start and the tax bracket rate specific to your client. For joint annuitants, you must do both the income start age and tax rate, but must also check the Joint Rider box.
Now you are ready to actually illustrate the case. To do this, there are two options, Quick View and Download.
Quick View will give you a basic illustration showing just the calculated numbers. Given you have one of our fixed annuities selected, this will include guaranteed and current cash value growth charts, and the premium schedule. Assuming that you have payout options in your case setup, these will be shown by all annuities. However, the fixed annuities do not have to have a payout option in order to be illustrated.
In the Quick View of the payout options, you will be able to see which option is being illustrated, the amount that being bought, the yearly payout, the income factor, and the exclusion ratio. If you have multiple payout options set up, they will all be illustrated similarly to the picture above.
If you hit Download, the system will download a PDF to your computer and you can open or save it to share with clients. The PDF will contain more product information, along with everything included in the Quick View.
Hopefully this helps get you started quoting Annuities as I'm sure you will be excited for updates that are soon to come! If you have any questions or feedback, please reach out to us at the number or email below.
Thank you!
Illustration Development Team
Kansas City Life
illustrationhelp@kclife.com
1-800-572-2467 x 8162