RAM Group

Where Successful Agents Find A Home…

Mel’s Points of Interest

Each week I will send out my top choices as well as my picks for MYGA's, Special Strategy Annuities, Index Annuities, Bonus Annuities, and SPIA (Single Premium Immediate Annuities).

Sincerely, Mel Rohrer

Picks for the Week of 12/20/2011

TOP MYGA’s

Company	Minimum	AM Best Rating	Guarantee Period	Surrender Period	Product Name	1st Year Rate	Rate Thereafter	Average Annual Yield	Issue Age	Street Commission May be reduced at older ages
Liberty Bankers Life	$10K Q/NQ	B-	1	1	Bankers 1	1.10%		1.10%	0-95	0.50%
Liberty Bankers Life	$10K Q/NQ	B-	3	3	Bankers 3	1.75%	1.75% 1-3 yrs	1.75%	0-95	2.00%
Guggenheim > $250K	Q-$5K NQ-$10K		3	3	Preserve	2.25%	2.25% 1-3 yrs.	2.25%	0-90	1.50%
Guggenheim > $250K	Q-$5K NQ-$10K		4	4	Preserve	2.50%	2.50% 1-4 yrs.	2.50%	0-90	2.25%
American Equity	$10K Q/NQ	A-	5	5	Guarantee Series	2.90%	2.90% 1-5 yrs.	2.90%	0-80	3.00%
Liberty Bankers Life	$10K Q/NQ	B-	5	5	Premier Plus	3.80%	2.80% 2-5 yrs	3.00%	0-90	2.00%
Guggenheim > $250K	Q-$5K NQ-$10K		5	5	Preserve	3.15%	3.15% 1-5 yrs.	3.15%	0-90	3.00%
Guggenheim > $250K	Q-$5K NQ-$10K		6	6	Preserve	3.35%	3.35% 1-6 yrs	3.35%	0-90	3.00%
American General	$5K Q/NQ	A	7	7	Horizon Select	2.20%	2.20 % 1-7 yrs.	2.20%	0-85	3.00%
American Equity	$10K Q/NQ	A-	7	7	Guarantee Series	3.00%	3.00% 1-7 yrs.	3.00%	0-80	3.00%
Liberty Bankers Life	$10K Q/NQ	B-	7	7	Premier	3.30%	3.30% 1-7 yrs	3.30%	0-85	2.00%
Liberty Life	$5k Q/NQ	B++	7	7	MYG	4.25%	3.25% 2-7 yrs.	3.39%	0-80	2.75%
Guggenheim > $250K	Q-$5K NQ-$10K		7	7	Preserve	3.50%	3.50% 1-7 yrs.	3.50%	0-90	3.00%
Guggenheim > $250K	Q-$5K NQ-$10K		8	8	Preserve	3.70%	3.70% 1-8 yrs.	3.70%	0-90	3.00%
Guggenheim > $250K	Q-$5K NQ-$10K		9	9	Preserve	3.90%	3.90% 1-9 yrs.	3.90%	0-90	3.00%
Guggenheim > $250K	Q-$5K NQ-$10K		10	10	Preserve	4.10%	4.10% 1-10 yrs.	4.10%	0-90	3.50%

****Please note rates are subject to change without notice. Call to verify rates and potential rate changes.Individual carriers are responsible for any rate locks they may offer, rate locks are not contractual guarantees of a rate.

Put your Client’s money in safe hands - Rates effective 12/2011

In a low interest rate environment, many clients are reluctant to lock in for several years at low rates. Many brokers are having success in overcoming this reluctance by offering annuities where clients can get 100% of their original premium back at any time!

Great American Life Insurance Company is proud to present their new Safe Return Index Annuity, with timely and competitive features like:

Return of 100% Principal at any time!
R Bailout Cap (surrender charges waived if renewal cap declared below bailout rate!)
No MVA
10% free annual withdrawal
Minimum Guaranteed 2% on 100% of premium

Annual Pt.-to-Pt. 4.00% Bailout Cap 3.50%

Annual Monthly Average Cap 4.00% Bailout Cap 3.50%

90% of annuity policyholders are happy with their annuity; 86% said they would purchase another annuity if asked; ONLY 6% of annuity policyholders have been asked by their agent to purchase another annuity. Are your clients in that 6%?

RELIANCE STANDARD - Interest Rate effective Sept 29, 2011

Eleos-MVA - 3.00% Base + Bonus (Base is 2.00%)

Single Premium Deferred Annuity with Market Value Adjustment Provision (may not be available in all states)

$10K - $500K / Q and NQ

Minimum Guarantee Rate set at issue (fixed for the life of the contract). Rate subject to change quarterly.

Issue Age 0-85 Owner/Annuitant

Available for: Non-Qualified funds, IRA rollovers/transfers & contributions

GBU

AM Best - B+ +

Effective 11/15/11

	Effective	Annual	Yields
Plans	Non-qualified Less than $5,000		Non-qualified $5,000 or More and All Qualified
IOC #
Preferred - First year *	3.00%		3.00%
Preferred - Renewals (Years 2 - 5)	3.10%		3.60%
Preferred - Renewals (Years 6 & thereafter)	3.00%		3.00%

United Heritage Life Fixed Annuity

Product Name - Heritage

Flexible Premium Deferred Annuity

Current Interest Rate: Age 0-80 = 1.85%(as of 10/01/2011)

Minimum Premium: $100/month ($50/mo for qualified contracts)

10% Free Withdrawal: 1 withdrawal per year of accumulated value

Cumulative up to 50%!!!!!!

Interest income and systematic withdrawal option

Surrender Period: 7 years (8, 7, 6, 5, 4, 3, 2 %)

Nursing Home Waiver (not available in Minnesota)

*SINGLE PREMIUM IMMEDIATE ANNUITIES (SPIA)*

· Lincoln Financial

· Genworth

· Symetra

· American General

We believe there's a 3-pronged approach to ensure that you are presenting annuities confidently to your clients & prospects:

1. Everything is Relative

Fixed Annuities have a good return compared to the other options that a client has for parking their funds. As of Friday, the highest yielding CD in the country offered 3.05% for 5 years, and the highest yielding money market was about 1.40% (bankrate.com). Fixed Annuities are very competitive given what the market is bearing right now.

2. The Cost of Waiting

Clients are giving up a lot of money waiting for rates to go up. History tells us that rates go up gradually- they most likely won't double in 12 months. Now is the time to take advantage of higher yielding products that offer liquidity, no MVA, and possibly Return of Premium. The client's money is put to work now, and there's a hedge built-in if rates do move up quickly. Compared to the highest yielding money market account, a client is giving up $1,500 per year per $100,000 by not taking advantage of a 3% fixed annuity.

3. Use an Illustration

An illustration is a graphic way to show a client that their money in a fixed annuity is always growing. The majority of the population learns & understands by seeing something visual. The illustration re-enforces that your money is growing, and it gives an agent the ability to explain all of the features of the annuity.

Looking at it another way, say you were deciding between 2 cars to purchase. One is $35,000, and the other is $70,000. You're definitely going to be asking yourself "What am I getting for $70,000?" Clients should be looking at rate as only 1 feature of an annuity and having their agent help them answer "What am I getting for that rate?"

Fixed Annuities can be a great fit in any rate environment if you sell features, use visuals (illustration), and confidently convey how the product fits in a client's overall portfolio.

RAM Group

158 So. Franklin Street

Janesville, WI 53548

Ph: 800-686-4238

Fax: 608-756-0048

www.rohrerandassociates.com

For Agent/Broker Use Only