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Annuity Liquidity Program™ Stone Street Capital’s.

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Presentation on theme: "Annuity Liquidity Program™ Stone Street Capital’s."— Presentation transcript:

1 Annuity Liquidity Program™ Stone Street Capital’s

2 2 What is the Annuity Liquidity Program? Simply stated, the Annuity Liquidity Program™ provides up-front cash to your clients for their annuities through the purchase of the future annuity payments. Exit strategy for annuities that can be superior to the insurance company’s surrender charges Provides liquidity for annuities that have no surrender options. Proven, industry accepted and legal process whereby Stone Street Capital purchases part or all of a stream of guaranteed annuity payments from an annuitant or their beneficiaries

3 3 Annuity Liquidity Program Details What annuities qualify for the program? –Almost any annuity that is not variable or not qualified –Fixed annuities –Immediate fixed annuities and SPIAs –Deferred annuities that can be immediately annuitized or are in payout Can you cash out a portion of the annuity? –Yes. Are there surrender charges? –No. This is not a surrender of the annuity, but a transfer of ownership. –No commission recapture on the sales of the original annuity.

4 4 Benefits Provide up-front cash to your clients for their annuities by purchasing the future payments. Presenting this liquidity option provides a valuable service in the best interest of your clients. Provides you enhanced professional and fiduciary due diligence by presenting alternatives now available to your client. Cross selling to your clients provides you additional income Estimated at least one out of three liquidated annuity clients will purchase an additional insurance or investment product - from you!

5 5 Why Clients Need Liquidity Cash Out Inherited Annuities Changes in Retirement Planning Estate Planning and Wealth Transfer Investing in Alternative Insurance Products Unlock Annuitized Life Insurance Proceeds Any Immediate, Unforeseen Financial Need

6 6 Illustration #1 Inherited Annuity Benefit –Insurance company gives a choice of $1,900/month for 60 months or a one time cash payment of $78,991. –Annuity Liquidity Program™ provides a cash payment of $91,102. $12,111 MORE. –Takes proceeds and invests in alternative insurance products

7 7 Illustration #2 Wealth Transfer –Immediate annuity, 20 years period certain, purchased 4 years ago for $1.65M. –Sold $4,000 portion of the $8,213 month payment for the next 15 years for $452,323. –Used proceeds to fund a flexible premium adjustable life policy with a face value of $1.6M. –At death, child would receive $1.6M tax free, compared to net proceeds of around $600,000 after the tax bill.

8 8 The Market Opportunity Net assets of the non-qualified annuity industry have been growing steadily over the past ten years. LIMRA forecasts continued year over year growth. $6.62 Trillion – an enormous industry

9 9 Liquidity Need Estimates show that approximately 5% of fixed annuities will be fully surrendered and 18% will have partial withdrawals. $577.8 Billion surrendered or withdrawn, est. 10 year total.

10 10 What’s Your Piece of the Pie? There is a tremendous opportunity to provide a solution to annuity owners who need liquidity.

11 11 How it Works 1.Call, fax, or submit online simple one page form to Stone Street with annuity specifics to receive the cash value within hours 2.Offer clients new cash options that are usually superior to surrendering to their insurance carrier 3.Client signs purchase agreement 4.Cash usually received in 2-4 weeks

12 12 How You Get Paid We keep it simple. We are the buyer and your client is the seller. Similar to real estate transactions, Stone Street Capital provides a purchase price in our proposal and you take that offer to your client with a disclosed fee set by you. Example: SSC Lump Sum Offer to Annuitant $205,000 Your Fee Set By You With Annuitant (e.g. 4%) $ 8,200 Net Payment to Annuitant $196,800

13 13 About Stone Street Capital Provide immediate up-front cash through the purchase of future periodic payments from traditionally illiquid assets: –Annuities –Structured Settlements –Lottery and Slots Prizes 20 Years in business Pioneered the secondary market Purchased in excess of $2 Billion in annuity payments

14 14 Contact Annuity Liquidity Program™ Find Out Within Hours How Much Any Annuity is Worth Call (800) 351-5207 OR Visit to download a simple proposal application Disclaimer: We do not purchase variable annuities, or annuities with enforceable anti-assignment provisions. All purchases subject to applicable law. We do not provide tax or investment advice. Annuitant owner should consult their own attorney, accountant and tax advisor regarding any sale of an annuity.

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