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This rule estimates how long it takes money to double based on interest.
What is the Rule of 72?
This is the age most permanent policies are illustrated to in the IUL
What is age 120?
This rule suggests a safe annual withdrawal rate in retirement.
What is the 4% rule?
This feature guarantees income for life.
What is a lifetime income rider?
This type of interest works against borrowers over time.
What is compound interest on debt?
At 8% interest, this is approximately how long money takes to double.
What is 9 years?
This is the main risk of relying only on term insurance.
What is outliving your coverage?
This is the age you can withdraw from retirement accounts penalty-free
What is age 59½?
This phase is when money is being added to the annuity.
What is Accumulation Phase?
You make more but spend more — this trap is…
What is lifestyle inflation?
This is the biggest risk of holding too much money in cash long-term
What is inflation risk?
This process determines risk class and pricing.
What is underwriting?
This is the required withdrawal starting later in retirement.
What is a Required Minimum Distribution (RMD)?
This type of annuity tracks a market index without direct risk.
What is an indexed annuity?
You only pay minimums — this happens long-term.
What is paying significantly more in interest over time?
The following are 2 examples of [x] accounts 1. Bank Accts, 2. Certificate of Deposit (CDs)
What is Fixed accounts?
You underfund a permanent policy — this could happen
What is policy lapse?
This risk involves market downturns early in retirement.
What is sequence of returns risk?
These are fees for withdrawing funds early.
What are surrender charges?
This ratio is used to evaluate a client’s ability to manage debt
Debt-to-income ratio
You’re earning 6%, inflation is 3% — this is your real return
What is 3%?
You get approved at a better health class — this improves
What is your premium?
This type of account allows tax-free withdrawals in retirement.
What is a Roth IRA (or Roth account)?
The biggest benefits Annuities offer
What is tax deferral?
This is the approximate total debt of americans in credit cards
What is $1.3 trillion?