Great American Life Insurance Company recently introduced two new annuities to their portfolio, the Premier Bonus and Premier Income Bonus. Here are some thoughts on how to position Great American, and understand the new annuities.
First, it’s important you know two of the top selling annuities from Great American:
- American Landmark 5 –This is a five-year, short-term option with growth potential. The indexed strategy caps are competitive, and the product offers a fixed rate of up 3%. This is a great short-term option.
- American Legend 7 – Higher caps than the Landmark 5, annuity but in a seven-year contract. Optional riders are available with this product.
Sales Idea: Add the Inheritance Enhancer Rider. Issue ages for the rider are 55 to 85. It could be particularly appealing to clients ages 75 to 85 because it offers an alternative for clients looking for a great wealth transfer option, or those who can’t get approved for LIFE INSURANCE. This rider offers a 7% rollup credit for 10 years. The contract must be in force for a minimum of five years in order to recieve payout. If the client dies before income payments begin, all rider charges will be credited back. (Review agent guide for more details)
New Products Now Available!
Great American is rolling out the Premier Bonus and Premier Income Bonus products in 38 states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, DC, Florida, Georgia, Hawaii, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico ,North Dakota, Ohio, Oklahoma, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, Wyoming.
- Seven-year annuity
- 5.75% purchase payment bonus
- Ideal market – Late 50s to early 60s who prefer not to commit to an income rider or fees in an FIA so they can take advantage of a 5.75% bonus with good caps and a short-term contract.
Premier Income Bonus
- Seven-year annuity
- Built-in income rider offers 8% rider bonus and 8% rollup for 10 years
- Good for clients seeking early income
- Caps and participation rates are higher than Premier Bonus
- Ideal for clients ages 65-70 who are looking to take income in the early years.
Premier Bonus Marketing Collateral
Anything unique about Great American we should know?
- Their optional income rider charges are usually refunded at death, if there is no successor owner, and if owner has not started to receive income payments. This is a very consumer-friendly feature you may not see from other products, and it helps combat the “use it or lose it” hurdle.
- Optional income rider charges are not refunded at death under the Legacy Income product because there is a death benefit paid upon death.
- Death benefit rider (aka Inheritance Enhancer) also will refund rider charges, if there is no successor owner, and the owner passes away during the first 5 contract years. Note - after the 60th month, then the death benefit is in effect and paid upon death.
Top Reasons to Sell Great American
- “A+” rating with S&P; “A” (Excellent) rating with A.M. Best
- Received two upgrades from S&P during financial crisis
- A U.S. based company traded on NYSE ticker: AFG.
- In business over 145 years and a top provider of fixed index annuities over the last 10 years; and manages over $61 billion in assets as of June 30, 2018.
- Simple product portfolio focused on short duration accumulation products and a few great riders.
A.M Best rating of “A+” (Excellent) affirmed August 11, 2017 and is the second of 16 ratings. Standard & Poor’s rating of “A+” affirmed February 23, 2018 and is the fifth highest of 22 ratings. Products issued by Great American Life Insurance Company®, member of Great American Insurance Group (Cincinnati, Ohio), under contract form numbers P1112916NW, P1470017NW, P1129918NW and P1129918NW, endorsement form E1130018NW, and rider forms R6032310NW and R6032410NW (not available in Massachusetts), R6042513NW and R6056918NW. Form numbers, features and availability may vary by state.