Oxford Life Introduces Agent Tool for Calculating Tax Advantages to Clients

The Prosperity Select Combo Calculator offers an instant comparison of the after-tax value of an annuity purchase versus the after-tax value of a combined annuity-life insurance purchase.

(Image source: Oxford Life homepage.)

Oxford Life Insurance (Phoenix) has introduced a calculator tool to help independent agents show their annuity and life insurance clients the tax benefits of two products over one. The Prosperity Select Combo Calculator, built by the insurer, offers an instant comparison of the after-tax value of an annuity purchase versus the after-tax value of a combined annuity-life insurance purchase at a specific point in time.

By entering a few simple details based on the client’s financial status and goals, agents are able to plainly illustrate the most tax-efficient path for their clients to pass retirement savings to their children, grandchildren or charitable organizations, according to an Oxford Life statement.
“For agents who are so used to only selling annuities, here is an easy-to-use tool that can assist them in selling single premium life insurance,” comments Mike Quaranta, VP, Sales, Oxford Life. “The reason I like the calculator is you can adjust deposits to each product line while sitting with your client at the kitchen table, moving the numbers up and down, to show the client how the allocation changes can maximize what is available as a death benefit.”

Maximizing Funds to Hand Down

Life insurance death benefits are tax free from federal income tax while the interest buildup in an annuity is taxable. If a client has plans to earmark savings for their heirs, church or other nonprofit, the Prosperity Select Combo Calculator helps them determine what portion of retirement can go toward life insurance to maximize the funds that will be handed down.

“We’re just combining the analysis of the death benefit into one easy calculation,” adds Quaranta. “The benefit of using the Prosperity Select Combo Calculator is to get to the point where the client feels very comfortable seeing the advantage of having some money in a tax-free life insurance policy along with a traditional annuity.”

Annuity Carriers Prepare for the Market of Tomorrow

Anthony R. O’Donnell // Anthony O'Donnell is Executive Editor of Insurance Innovation Reporter. For nearly two decades, he has been an observer and commentator on the use of information technology in the insurance industry, following industry trends and writing about the use of IT across all sectors of the insurance industry. He can be reached at [email protected] or (503) 936-2803.

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