Frequently Asked Questions

One of the services we provide to our members is the evaluation of clients' existing annuity policies to determine if it is possible to leverage current benefits to help meet the goals of the financial plan, or, if it makes sense to use the policy to fund a no-load annuity that may be able to achieve client goals more efficiently.

No. A 1035 exchange can be used to move from a variable annuity into any other type of annuity. Your DPL consultant can work with you to find the product that best fits with the needs of your client’s financial plan.

Clients can often save thousands of dollars in product fees when it makes sense to move from a commissioned insurance product to a low-cost, commission-free product. In addition to providing potentially improved financial outcomes to your clients, offering insurance solutions as part of a holistic financial planning process enables you to expand services, potentially attract new clients and increase AUM.

The core premise of annuity rescue is to reduce product cost when possible. DPL takes that premise further by looking to do more than just reduce cost, by to also meet other client needs. DPL consultants discuss client scenarios with advisors to provide different solutions that can help client financial plans. Clients can often want low-cost guaranteed income, tax efficient withdrawal strategies and/or principal protection, and DPL can provide those solutions.

Yes, once assets are invested into a single premium immediate annuity, they have been annuitized with the insurance carrier and turned into an income stream. For clients who fear “losing” to the insurance carrier, utilizing a "period certain" feature can ensure heirs receive assets should the client pass away earlier than expected.

Most advisors think of single premium immediate annuities (SPIAs) when they think about lifetime income, but other types of annuities also can be used. Fixed Index, Variable and Deferred Income annuities can all provide guaranteed lifetime income. Based on client objectives, your DPL Consultant can help you find the right product type to meet their needs.

Lifetime income is important to clients for many reasons, both financial and psychological. Lifetime income guarantees through annuities can more efficiently fund retirement income needs while helping mitigate sequence of return risk and longevity risk. It also provides psychological benefits to clients knowing their income is secure even when markets may not be.

The principal protection aspect of FIAs make FIAs a strong choice for clients nearing or in retirement to help mitigate sequence of returns risk. FIAs also can have strong payout options that often increase when clients delay taking income payouts. DPL advocates considering an allocation to FIAs as part of a client’s fixed income portfolio as they near retirement.

While income payout rates are typically lower in VAs than other products, variable annuities provide the most potential upside. For clients with longer investment horizons, the value of tax deferral can help accumulation, potentially providing a larger balance to drive the income payments when income features are elected.