Go-to Annuity company

[goillini52]

Using those numbers, anything over 72k, the annuity agent makes more, anything under, the med supp agent makes more. In practice though, the same agent should be selling both.

Keep in mind that MYGAs are almost always rolled at the end of the surrender/level interest payment so if the agent stays in touch and still knows the market, they'll likely get paid again (like the med supp agent moving his client and continuing FYC renewals).

Your #'s are very close and that's a great analogy.

 

[LostDollar]

I used to have Athene before it was Athene. I canceled my contract with them when Athene took over (can't remember why). I'm very happy with Oxford, easy to work with, A rated and they'll fit my needs in most cases.

Yes the $20K minimum is too much for some. From an agents point of view, a $10K MYGA's commission is only about $300. A DVH pays better and it's a lot less work.

I might take another look at Athene and ANICO. I already have Atlantic Coast Life, Sentinel Security, Liberty Bankers and Sons of Norway that I could write annuities through, but none of them are A rated.

Caveat, not an agent.

If Liberty Bankers = Liberty Bankers Life, they are A-.

 

[LostDollar]

As a consumer, who cares what the agent makes? Take the best rate from the highest rated carrier and move on. It doesn't affect you either way if you're doing your own shopping.

That was a specific comment to goillini. I don't need to defend it to anyone else.

 

[Tahoe Ray]

That was a specific comment to goillini. I don't need to defend it to anyone else.

Well ok then.

 

[LostDollar]

Well ok then.

 

[LostDollar]

caveat, not an agent.

Based on seeing no online listings for the Athene MYG and less online listings for the Athene MaxRate than American National products:
From your perspective as an agent, and going back to the Oxford conversation you had with TR, if you were looking at the American National product vs Athene MYG from a selling perspective, I think the American National products are likely to pay you a higher commission.

(And I appreciate the Oxford suggestion you made in another thread, but it is not something I can consider at this time because of their minimum premium. I guess I am hitting annuities like I did MediGap, a less common, lower commission product.)

I don't sell Medigap, but I don't believe this true from what peers have shared. Thought Medicap payed around 20% 1st year & 10% renewal commission. MYGA annuities, on the other hand, especially the shorter durations terms are a 2-3% one time commission..IE: 5k annuity might only pay the rep $100-$150 one time

That last paragraph was an aside to goillini making only a comparison of product types I have purchased/am going to purchase, not a specific commission dollar related comment. I will post a clarification for you, but these posts take me awhile and I am out of time right now, it will be tonight or tomorrow before I can do that.

LD was referring to the lower commission product that he carries....a High Deductible Plan F. The commission % isn't low, but the premium's only about $50 a month, so the agent barely makes anything.

(Caveat, not an agent.)

@Allen Trent

I started my post with some commission comments I wanted to make to goillini. While doing that I remembered I had never thanked him for suggesting Oxford to me as a possible annuity source in a conversation in another thread. That led me to that last sentence which you were picking up on.

Medigap/Medicare Supplement:
Medicare Beneficiaries are liable, without end, for 20% of their Medicare Part B claims. The old Medicare Supplement Plan F would cover all of the Medicare Beneficiary's 20% coinsurance. There is also a Plan G, which is similar, but does not cover the part B deductible.

Based on posts in the senior forum, those F and G supplement plans apparently pay commissions that agents consider reasonable. However, both of those plans also have a "high deductible" version. Instead of premiums of $200-$300 per month, they have premiums of $60-$70 a month. This limits the commissions. The high deductible amount changes each year. In non-agent rounded numbers, the deductible this year is $2,500, so a high deductible plan holder has a potential out of pocket liability of premium, plus $2,500 high deductible amount, plus (maybe or maybe not) the Part B deductible.

Based on my understanding of posts, agents don't like to suggest the high deductible plan because of the low commission, it is difficult to explain to the client so they understand, and even if the client understands at the time of purchase, they may not remember at time of use-generating a complaint to the agent.

I have a high deductible Plan F. I chose the plan type to save premium money. I chose the carrier because I thought they offered a reasonable chance of rate stability. I wanted to use an agent, but had some trouble finding an agent appointed with the specific carrier I wanted to use. When I mention the high deductible Medigap plans in the senior forum, I am often reminded by one or more agents that agents cannot make a living selling high deductible plans.While I cannot comment to specific premium or commission rates, I am well aware of the "commission issue" for agents, in a general sense.

(goillini has seen my senior forum posts for some time and would be aware of a good portion of that.)

Annuities:

I'm talking about a $5K annuity purchase.
Premium limited commission.
Premium limited product availability.

Interested in a flexible premium MYGA.
Feature limited product availability.

Purchaser imposed premium and feature restrictions lead to more challenge finding a writing agent.

---------------

That's the "behind the scenes" of the Medigap - Annuity purchase comment to goillini.

 

[LostDollar]

I would go to whoever you bank with. You'll have an agent/advisor still but some banks have special products that aren't distributed through normal channels from a few major carriers.

Most online websites do not show every annuity available. Agents customize which annuities to show on those sites.

And just because they dont list it, doesnt mean they cant/wont sell it. Just ask.

I was told yesterday that the Athene MYG is only available through banks.
I don't know yet whether "banks" includes credit unions and banks, or just banks.

So what I think I have learned is the Athene MYG is a lower premium version of the Athene MaxRate product, available only through banking channels.

I am now becoming uncertain as to what I should think about the Athene customer service issues when making a decision whether or not to buy an Athene product at this time.

 

[Allen Trent]

I'm talking about a $5K annuity purchase.

Is there any reason you are not considering CDs? Some can be bought for as low as $1k, have lower surrender charges than annuity, have FDIC protection & are not tax-deferred.

For some, tax deferral is important & NQ annuity can be a great match for those that benefit from tax deferral. However, NQ Annuities can be a very bad tool for the majority of seniors in lower or 0% tax brackets as they leave a tax bill at death on the gains, many times to beneficiaries in a higher tax bracket.

if you have a broker or an online broker, see what CDs they might offer today. here is a screen shot from my phone from my own Fidelity account. I laddered a great deal of my own portfolio 3-4 months ago with plans to put money back in the market if the market was on a decline, etc

 

[scagnt83]

Again, IBonds.

9% interest rate.

$25 minimum purchase.

$10k max purchase per calendar year

Purchase directly online from the US Treasury.
Individual - Series I Savings Bonds

 

[LostDollar]

I started that process (checking with online agents) last week. As I tried to indicate above, the first one never directly answered my question, just came back with his agency's process of a minimum $20K purchase so he couldn't help me.

I have a second inquiry out which i hope to hear back on today or tomorrow. I expect that answer to be no too.

At that point I believe Tahoe Ray's suggestion will be the ticket. Historically when I have seen those guys pop up on a credit union dashboard, I have ignored them because I have had no money for that level of savings. More recently after whatever that law change was that allowed "old farts" to do IRA deposits, I have ignored them because I have been hard pressed to deal with the basic issue of HSA and IRA deposits from discretionary cash flow. So, based on funds availability and fear, I had totally removed from memory the idea that a credit union (or bank) might be a source of an investment advisor or annuity sales person.

I have more credit union memberships than dental insurance policies. When I checked I found one that actually had wealth management listed as a service on their consumer dashboard. That takes me to an agent's name and email address. The (local) credit union advising relationship should take care of low commission, low purchase amount issues. If I need to email him about a $5K Athene 5YR MYG MVA, I expect a yes answer and I hope we can even do the app over the phone rather than having to schedule in office meetings at one of the credit union branches.

I am not going to be able to get the Athene MYG product without putting assets under management at a financial institution so they can do a full fledged financial needs analysis so the agent can avoid any suitability penalties from somewhere.

My other options right now are to buy a $5K product from American National or NassauRE, save up for a $10K Athene MaxRate, or to reevaluate other non-Athene $10K products because of the long application times at Athene, and save up for one of those (or to consider some non-annuity products that were suggested in the thread).

I appreciate the comments and input while I was trying to make the MYG work.