Adding an Annuity with a Pre-Existing Income Rider

• Initial Account Balance: $250,000 

• Hypothetical Return: 2% 

• Bonus Percentage: 10% 

• Registration Type: Qualified (Tax Income Distributions) 

• Asset Plan Allocation: Indexed Annuity 

• Rider Payout: $17,500 

• Rider Payout Increase: 1% 

• Anticipated Month to turn on income from this product: September 

• Age of Payout: 67 

• Income Rider: AA FFA Sample-R26-02 Future Funded Annuity Placeholder 

 Step 1: Edit: Click on the green Edit button underneath the structured income planning subheading title. 

Step 2: Add Account: Click on the green Add Account button underneath the structured income planning subheading. 

Step 3: Account Name: Enter an account name. 

Step 4: Initial Account Balance: Enter the amount for the annuity. 

Step 5: Hypothetical Return: Enter the hypothetical return. 

Step 6: Bonus: Enter the bonus percentage amount. 

Step 7: Tax Calculation Option: Click on the drop-down caret arrow in the text box and select the tax calculation option. This should match the taxability of the annuity with an income rider.  See Article: Tax Calculation Options for Accounts  

Step 8: Sel: Click on the green Sel button next to the text box for the asset plan allocation and select the asset plan allocation. 

Step 9: Select Income Rider: In the select income rider textbox, click on the drop-down caret arrow and select the income rider from the menu. See Article: View Income Riders Function 

Step 10: Number of Months of Payout in First Year: Type in the number of months in the text box. The default is set to 12, suggesting the income feature would be enabled in January. 

Step 11: Income Rider: Click on the radio button for Start payout from income rider. 

Step 12: Income Data: Click on the text box for the year you would like the Income Data to start. 

Step 13: Start Year for Rest of Plan: Click on the green Start year for rest of plan button next to the Income Data Table. See Article: Income Data Table within the Manage Account Page 

Step 14: Income Data: SIPS will automatically populate the terms "rider" and "client 1" in the Income and Variable columns of the table. 

Step 15: Save: Click on the green Save button underneath the Manage Account Subheading. 

Step 16: Structured Income Plan: SIPS will automatically take you back to the Structured Income Planning page. A new column under Accounts should automatically appear. See Article: Understanding a Structured Income Plan 

Step 17: Annuity Account: The grayed-out section displays the growth rate (shaded in orange), initial account balance, the bonus percentage amount, and the amount with the bonus included within it. See Article: Understanding a Structured Income Plan that has a Target Income and an After-Tax Target Columns 

Step 18: Annuity Account Column: The Account column shows the cash value of the annuity projected each year into the future. Some insurance products have benefits that are only available if there's cash value left in the annuity such as death benefits or long-term-care benefits. Using this feature, you can project when those benefits may or may not be available in the context of a client's financial plan.

Step 19: Inc Rider Account: Once an income rider is selected for an account, you'll see a new column titled "Inc Rider". This shows some visibility into the income payout calculations prior to income being turned on. You can see in this example that the income rider amount increases by 7.25% each year and there's no initial bonus on the income amount as that's set as 0%.

Step 20: Inc Rider Column: Once the income is turned on, this column will show 0, but th income amount in the right-most column will be calculated based upon the Inc. Rider rollup amount. This "Inc. Rider" column has no bearing on cashflow in the actual plan but provides you as a planner visibility into how the income calculations for the specific product are derived.

Step 21: Income age 67: Take note that the income at age 67 is a partial amount. 

Step 22: Income Column: Take note that the income column shows a fixed amount for the rest of the plan.