How to Leverage Old Annuities to Provide More for Your Heirs

August 2020

FSG, offers opportunities to leverage previously purchased annuities to give greater, fully guaranteed funds to heirs.

CRYSTAL LAKE, ILLINOIS, July 2020 — Financial Strategies Group LLP (FSG), a full-service insurance general agency (GA), caters to the high-end life insurance market and offers opportunities to leverage previously purchased annuities to give greater, fully guaranteed funds to heirs.

As time progresses, certain financial products purchased in the past may not be as desirable as they once were. More specifically, old annuities purchased to provide guaranteed income streams are highly taxed and, often, are not used. Many annuities grow over time and have an associated death benefit which makes them not only difficult to reposition, but also taxable if surrendered. FSG has a strategy for clients who would rather use the asset as leverage to provide a fully guaranteed, higher net amount to their heirs.

FSG analyzes each client’s unique situation to determine if surrendering an annuity for cash value is financially sound. Annuities frequently have taxable gains; therefore, moving the funds into a Single Premium Immediate Annuity (SPIA) is a more sensible option that provides an exclusion ratio and a higher guaranteed annual income stream. Once complete, if the client is insurable, FSG will help the client to net out any taxes due and purchase a guaranteed life insurance policy. When comparing the projected net value on the current annuity to a guaranteed life insurance policy, the guaranteed life insurance policy generally can provide a significant increase in the benefit left to the heirs.

This opportunity being offered by FSG has the potential to work best for clients aged 85 and younger. It is important to note that the clients do not need to be in peak physical condition to qualify. Most clients over age 70 may have health issues such as high blood pressure, high cholesterol, diabetes, or even past cancer history but they are still insurable. This is a possibility worth examining and FSG is here to help. FSG is a support channel for financial advisors and is run by salespeople in the field.

Financial Strategies Group, LLP was founded in 2008 and is a full-service insurance general agency that offers a comprehensive point of sale to financial advisors and their clients. FSG specializes in complex strategies including wealth transfer, business succession, long-term care and supplemental retirement income planning. Details on FSG’s services and how you can join the agency are available at