Skip to main content

Legacy annuities: knowing when to hold and when to fold calls for technical know-how and unbiased analysis

When Toney Falkner joined DPL, he shared details on two policies owned by a potential new client with his lead DPL consultant. In this case, the policyholder believed he was being forced to annuitize both policies and was in search of a better option.

Toney Falkner typically refers his clients to external, commission-based brokers for their insurance needs. Traditional insurance products, laden with commissions, conflict with his fiduciary mission. He thought there must be a better way to address his clients’ insurance needs than to send them to a broker who doesn’t necessarily share the same ethos.

“When I read about DPL in an industry publication, I immediately saw the benefit of working with their team to offer commission-free insurance solutions to my clients,” said Falkner. “One of the key advantages was that I didn’t need to obtain an insurance license to implement insurance. With DPL, all I needed to do was become a member to utilize their licensing and expertise.”

CHALLENGE:

Legacy Annuities, Forced Annuitization

Falkner joined DPL, and shared details on two policies owned by a potential new client with his lead DPL consultant, Jonathan Barth. In this case, the policyholder believed he was being forced to annuitize both policies and was in search of a better option.

“Toney told me that a family member of one of his clients was being forced to annuitize a contract due to his age,“ explained DPL consultant Jonathan Barth.  “The challenge was that the policyholder doesn’t need the income currently and would like to continue deferral of the contract. This situation is extremely common as clients are living longer in their retirement years and have old products with low forced distribution ages.”

SOLUTION:

Hold One, Fold One

For the first annuity, DPL explored several product options and found they could transfer the existing annuity to a new contract with a higher age limit, thus avoiding the forced annuitization.

When reviewing the second variable annuity policy, DPL discovered an option to defer annuitization for another 10 years, a feature Falkner wasn’t aware of. In this case, it was in the policyholder’s best interest to stay in the current product.

The policyholder’s problem was solved.  For Falkner, the experience confirmed he had made the right choice to work with DPL.

“For me, the value in the time I saved by not having to research the policy myself, and the quality of DPL’s product analysis, was enormous,” said Falkner. “It’s good to know that there are insurance experts out there who are truly objective. DPL’s insight helped me recommend the best solution to this investor in his time of need. Now he is a client. I will definitely be consulting with DPL in the future.”

Advisors Who Viewed This Also Viewed

Video

May 27, 2022

DPL Consultant Ross McGoodwin discusses how financial advisors are shifting their mindset around Commission-Free insurance...

Video

Dec 06, 2021

Commission-Free annuities are designed to deliver greater benefits than commission-driven products, including lower costs, shorter...

Article

Aug 13, 2021

Every quarter, SRI releases annuity sales data. But this release was particularly surprising to some...

Webinar

Jul 29, 2021
In this follow-up to DPL’s popular “Annuities 101” presentation, DPL Founder & CEO David Lau...

Webinar

May 26, 2021
Knowing when and how to leverage Commission-Free and annuity solutions can improve financial outcomes for...

Video

Apr 28, 2021

DPL's Jonathan Barth explains why stocks and bonds are no longer the best solution for...

Video

May 03, 2021

DPL's Jonathan Barth explains the significant difference between products sold on a commissioned basis, and...

Video

May 13, 2021

DPL's David Lau explains why he believes annuities belong in a 401(K) plan and how...

Webinar

Apr 27, 2021
Knowing when and how to leverage Commission-Free and annuity solutions can improve financial outcomes for...

DPL


©2022 DPL Financial Partners, LLC. All rights reserved.

DPL Financial Partners does business in the state of California as DPL Insurance Solutions
under California License #0M42434.

Securities offered through The Leaders Group, Inc. Member FINRA / SIPC
26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120 • 303-797-9080
DPL Financial Partners is not affiliated with The Leaders Group, Inc.

Check the background of this firm on FINRA’s BrokerCheck.

FOR REGISTERED INVESTMENT ADVISOR USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.