The following article is reprinted in its entirety from the June 2008 Issue of Agent’s Sales Journal
How to Grow Your Business with Annuity Liquidity Options
By Michele Hsu, Senior Vice President, Stone Street Capital
As seen in
Lisa decided to start a business and needed
$100,000. Lisa remembered that cash value and
called her advisor. By liquidating her remaining
annuity stream of 60 monthly payments of $2,200
through the secondary market, Lisa’s agent was
able to provide her with the cash she needed.
Never surrender before checking the cash value
You owe it to your client before they surrender
any annuity to check the market cash value.
Many times, you can liquidate the annuity in the
secondary market for thousands of dollars more
Types of annuities that can be purchased
The secondary market purchases fixed annuities,
whether they’re immediate or deferred. If it is a
deferred annuity, it usually needs to be in payout.
Not all annuities can be sold in the secondary
market. For example, variable annuities cannot
Also, any annuity with a qualified tax status is
Insurance agents and advisors who present
this new annuity liquidity option can provide a
valuable service that is in the best interest of their
client. Many times, proceeds from liquidating an
annuity can be put into other insurance products
— and now you have a new, loyal client.
Michele Hsu is senior vice president of Stone
Street Capital LLC. She can be reached at
New ways to increase your book of business are
hard to come by these days — and new annuity
liquidity options can help you do just that.
Traditionally, it has been difficult to provide
clients with flexible cash-out options once they
have committed to an annuity. There is now a
growing secondary market, however, for
liquidating annuity payments.
Why would someone be interested in liquidating
their annuity? There are as many reasons as there
are clients. There may be estate planning reasons,
an unforeseen immedia