AMERICAN GUARANTY FINANCIAL, LLC
“WHAT WE ARE ABOUT”
WE ARE BUILT ON A FOUNDATION OF:
Founder: Richard Unangst was a Regulator for 15 Years. He was employed for 6 1/2 years as a State Insurance Examiner, Examining New York Life, Metropolitan Life’s Property and Casualty Company, Jackson National Life Insurance Company, and many other Life Insurance Company’s. He was employed for 6 years as Examination Unit Supervisor for the State of Arizona Securities Division, Examining Broker Dealers and Investment Advisors. During his tenure at the Securities Division he conducted Investor Education Seminars (Teaching Investors how to protect themselves against fraud, scams, and high pressure tactics by salesmen) at various locations in the State of Arizona; he also authored PowerPoint Presentations on Variable and Fixed Annuities, which he conducted at the Securities Division to educate the Attorneys and Examiners on the understanding of Annuities. After retiring from the State of Arizona he was employed for 2 years as an Examiner for the National Association of Securities Dealers (NASD) now called Financial Industry Regulatory Authority (FINRA) at District 8 in Chicago, Illinois. The then (NASD) now (FINRA) is over sighted by the Securities Exchange Commission a branch of the Federal Government. Most of Richard’s professional career has been dedicated to protecting the public against unsuitable Sales Practices and Market Conduct activities.
Richard is a senior; as the Father of 7 Children, 19 Grandchildren and 35 Great Grandchildren he depends on his retirement funds to support himself and to help his family members. He knows the value of making wise Suitable Investments for the most favorable earnings. He shares the concerns you have to maintain the value of your retirement and investment funds in today’s uncertain economy.
Many Insurance Companies and Insurance Agents represent Annuity Products with 8%-15% Bonuses the first year or for a specified term; these are simply Marketing Tools and not interest earnings. If you read the fine print in many of these contracts that are offered, you will see that the contract (policy) guarantees the interest earning rate not to be less than 1%, which is the minimum interest rate mandated by State law. Many companies and their representatives offer Income Riders, which if you read carefully, when you exercise these options; you are actually withdrawing a portion of the principal of your annuity, thereby reducing the surrender value (Cash value) of your contract. Some companies actually charge a fee for these so called benefits. Many of the Annuities being offered are Variable Annuities, which are dependent on the Stock Market, or Indexed Annuities that the earnings are based on a Market Index, such as the S&P 500. These Annuities are Speculative usually guaranteed no to be less than 1%. We believe that Fixed Interest Rate Annuities are the safest for Principle protection and most stable for growth as the interest rate is fixed and not variable. Once you are past the free look period in the annuity contract you purchase, you are locked into the contract, unless you give up a significant portion of your investment in the form of Surrender Charges on the withdrawal of any of your annuity funds.
With Richard’s background and experience in insurance, he believes the primary considerations in purchasing an Annuity are 1. Suitability for the Senior Investor, 2. The Financial Stability of the issuing Company, and 3. The Interest Earning Rate, if purchasing a Fixed Deferred Annuity, or the Payout Rate if purchasing a Single Premium Immediate Annuity, commonly referred to as a (SPIA).
What is Suitability:
What is Suitability for the Senior Investor or for any Investor? Suitability is a very difficult term to define by marking with a check mark the items on the standard questionnaire form that all Insurance Companies and Securities Firms are required by law to have the client complete. The questions on these forms certainly provide valuable information to be considered in the Suitability process; however we believe that each person’s financial objectives, family needs, financial resources, and the individual’s desires for themselves and their family’s future are critical to each person’s Suitability Determination. Ultimately after reviewing all of the products benefits and obligations with full disclosure and with a thorough understanding of the contract and its terms explained by the representative in honest simple terms can the customer make the decision if the Annuity Product is Suitable for them?
“You the Customer should determine Your Suitability* for the product”, not the representative.
*As outlined in ARS Title 20-1243.03 Duties of insurers and insurance producers, provided for you at the appointment.
American Savings Life Insurance Company is celebrating its 62nd Anniversary, as of April 6th 2016. How do you measure the Financial Stability of a life Insurance Company? This can be accomplished by a comparative analysis of the key financial ratios of a Life Insurance Company with 25 of the leading Life Insurance Companies in the United States that have been in business for over 100 years. Key Financial Ratios are: a) SOLVENCY*, b) SURPLUS FUNDS, c) INVESTMENT YIELD, d) PROFITABILITY, and e) FINANCIAL STATEMENT SUMMARY. American Savings Life Insurance Company is a leader in these categories as demonstrated on the ‘INDEPENDENT COMPARATIVE REPORT for 2015”, by Standard Analytical Service, Inc., a copy of which will be provided to you for your review at the appointment. Solvency: Assets for each $100 of Liabilities. Average of the twenty five leadings companies= $105.65, American Savings Life=$141.37. Surplus Funds: Average of the twenty five leadings companies=$13.11, American Savings Life=$56.96. Investment Yield: Average of the twenty five leadings companies=4.82%, American Savings Life=7.64%. Profitability: Average of the twenty five leadings companies=$105.03, American Savings Life=$137.60.
*SOLVENCY (Or Liquidity) as required by the State Insurance Departments in the Insurance Industry is determined by applying Statutory Accounting Principles (SAP), which means that Assets and Liabilities are valued if liquidated as of the date of the reporting period, and not at some future date, such as long term investments or the future of contracts, unlike most other Financial Institutions that use Generally Accepted Accounting Principles (GAAP) in which the reported values on their financial statements are not as conservative as the SAP values reported on Insurance Companies financial statements.
Interest Earning Rate:
On Fixed Annuities it’s the interest rate that is credited to the annuity principle balance each year or the Annual Percentage Yield (APR) that American Savings Life Insurance Company pays on the lump sum that you have invested. This interest is tax deferred if left to accumulate and compounds each policy anniversary year end and thereafter in the annuity contract. If you choose the option to have the interest paid to you up front monthly, quarterly, semi-annually or annually rather than accumulate, then it is not tax deferred and you will receive a 1099 for the total interest paid to you for the years that you have chosen that option. American Savings currently pays 3.75% interest annually (APR) on their 9 year fixed annuity, called their Premier Series II Single Premium Deferred Annuity. The interest rate is guaranteed for the 1st year and is declared each year thereafter. They have a unique feature called a “Bail Out Rate” which means if they don’t declare the 3.75% interest rate the second year and each year thereafter you can take all of your money out without any surrender penalty. We are not aware of any other insurance company that has this unique Bail Out Feature in their Fixed Annuities. It’s your assurance that you will continue to earn your 3.75% interest on your annuity contract, or you can take all of your money out, it’s stated in the contract. Since American Savings started issuing annuities, they have always met their Bail Out Interest Rates during the surrender period.
Is the Monthly, Quarterly, Semi-Annual, or Annual Payments for Life, a Fixed period (No. of years), or a Fixed Period with Life, on a Single Premium Immediate Annuityreferred to as a (SPIA).
*Annual % Payout Rate equals the sum of the 12 monthly payments you will receive each year divided by the single premium you paid.
If the above information is in harmony with your Retirement and Investments goals in Safety of Principle, and Guaranteed Growth for yourself, your Children, Grandchildren, and Great Grandchildren, and if you have some Funds to invest or some CD’s coming due, please call me and I will make an appointment with you to explain these Annuity Products. I will answer any questions that you may have, so that “you can determine if one of these annuity products is suitable” for you, no obligation of course.