Feb 28, 2023
In this episode, The Annuity Man and Mark Iwry discuss the following:
What is a QLAC?
One of the best features of a QLAC
Structuring a QLAC with cash refund
Why QLACs aren’t popular
A QLAC or a Quality Longevity Annuiy Contract is a deferred annuity that’s helpful for people trying to save for retirement and want security in retirement in the form of a guaranteed lifetime income. You don’t have to worry about Required Minimum Distribution rules when you buy deeply deferred annuities.
One of the best things about the QLAC is that it allows you to take your personal IRA and attach your spouse as a lifetime income participant. Meaning when you pass away, your spouse will benefit.
QLACs can be structured with cash refund, which means that the annuity company will not keep your money when you die even though they are on the hook to keep paying you while you are breathing.
The reason why QLACs are unpopular is because it’s such a simple and straightforward product that it isn’t as profitable for the company as it is for their other products. There’s no room for agents to attach bells and whistles that cost their clients extra.
"People need health security, and they need retirement security. We have social security, and we have Medicare to take care of those two things. On top of Social Security, we've got our private pension system, and on top of Medicare, we've got our private health care system. " — Mark Iwry
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