The Standard

June 2010

Market Swings, Rate Changes, Success Stories

We’re swinging into summer with updated rates, quick tips and an invitation to send us your success stories.

You may have noticed The Standard has raised and lowered rates several times so far in 2010. In years past, The Standard would look at interest rate movements monthly and adjust rates accordingly. Since the market correction of 2008, the bond market has had dramatic swings in yields that have caused us to closely monitor rates and react accordingly.

As you know, financial strength and stability are the foundations of our success at The Standard. We realize these interest rate changes create extra work for you. However, aggressively managing our annuity rates is a necessity in these volatile economic times.

Thank you for the business and good selling!

Rich Lane
Director, Sales & Marketing

Simple Steps For Roth IRA Conversions

Eligibility limitations for converting from a TSA, Pension or Traditional IRA to a Roth IRA were lifted beginning January 1, 2010. Even though this conversion is a taxable event for the policyowner, some may see a benefit and wish to request this option. In addition, for conversions occurring in the 2010 tax year only, any amounts that would be included as income can be included in income in equal amounts in 2011 and 2012 rather than all at once, making a conversion more desirable in this tax year.

Steps for Conversion:

The policyowner should complete a distribution transfer form by marking that they wish to rollover to a Roth IRA.
The policyowner must also submit a substitute form W-4P and W-9.
The Standard will report the conversion on a Form 1099R in the year that the process is completed.
We will send a copy of the Roth IRA rider to the policy owner to add to their original contract.

continue

Sharing Your Success Story Could Win You A Free Gift

From panicked Boomers to rate fluctuations to White House pronouncements, these are interesting times for annuity sales. We’d like to start reporting on how brokers are using The Standard’s annuity products to meet changing customer needs. We invite you to send us your favorite success story, strategy or customer challenge and how you solved it.

If your story is selected for Annuity News, we’ll send you a thank you gift from our Company Store. Of course, customer names and details will be kept confidential. Just email us a paragraph or two.

A Quick Guide To State Life & Health Guaranty Associations

By Bill Douglas, Compliance Manager, Individual Annuities

Are you up to date on the liability limits and regulations for the state Life & Health Guaranty Association(s) where you do business? Here’s a quick refresher course and a table for use as a reference guide.