When Life Insurance Isn’t an Option: Legacy Planning with Fixed Index Annuities

For many pre-retirees, life insurance has long been the go-to tool for legacy planning. But what happens when it’s no longer feasible?

Whether due to age, health limitations, or insurability challenges, some clients simply can’t qualify — or afford — the policies they once intended to use to pass on wealth.

Fortunately, legacy planning doesn’t have to stop there. Enter: the modern Fixed Index Annuity (FIA).

🔐 Why FIAs Are a Powerful Alternative for Legacy Planning

Fixed index annuities offer something rare in today’s volatile financial climate: ✅ Principal protection ✅ Market-linked growth ✅ Tax-deferred accumulation ✅ Optional income and death benefit enhancements

And unlike traditional investments, FIAs allow clients to lock in gains and avoid losses — a powerful tool for preserving wealth across generations.

💡 Key Features That Make FIAs Legacy-Friendly

Here’s how FIAs can help when life insurance isn’t on the table:

1. Growth Without Market Losses

FIAs track index performance with a guaranteed floor — typically 0%. When the market goes up, clients participate. When it drops, they’re protected.

2. Tax-Deferred Accumulation

All gains grow tax-deferred, enhancing long-term compounding. This can result in more wealth transferred to heirs over time.

3. Guaranteed and Increasing Income Options

Optional riders provide:

• Lifetime income streams
• Inflation-fighting increasing payouts
• Long-term care doublers (for qualifying ADLs)

4. Death Benefit Enhancements

Several modern annuities offer structured or enhanced death benefits, helping replicate a life insurance-like impact — without needing underwriting.

🚀 Real Strategy: Repositioning “Lazy” Money

Advisors today are using FIAs to reposition cash and money market holdings into growth vehicles that are still considered “safe” and “low-risk” — but come with potential bonuses like:

• 🔸 40% Upfront Bonus
• 🔸 10% Guaranteed First-Year Interest
• 🔸 350% Participation Rates

These aren’t the annuities of 20 years ago. The evolution is real — and clients are responding.

👥 The Advisor’s Role: Personalizing the Strategy

Legacy planning is more than passing on assets — it’s about passing on confidence, care, and continuity.

At Simplicity UFC, we help advisors design customized annuity-based legacy solutions when life insurance isn’t an option. From training to illustrations to branded client materials, we give you the tools to build trust and deliver results.

Let’s help clients protect what they’ve built — and ensure it lives on.