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[LostDollar]

Isn't that true with all of them?

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.)

 

[Allen Trent]

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

 

[LostDollar]

(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.

 

[goillini52]

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 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.

 

[goillini52]

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

Med Supps pay FYC for 6 years in most states. Every time you move them to a new carrier to save them money, it starts a new 6 years FYC.

 

[Tahoe Ray]

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.

Oxford and ANICO pay the same. Athene pays less.

What's funny is Athene pays more to the IMO than ANICO (and Oxford pays more than both).

There really isn't a huge difference though. We're talking basis points here so any agent worth their salt isn't really concerned about the difference. Most just want the business.

When you start talking full percentages in commission, the waters get murkier.

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.

 

[Tahoe Ray]

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

They're really 2 completely different products (as you know) so you can't really compare the two.

Which pays more commission, solar installations or the car dealership?

Average 5 year comp is 2.5% (which is right where you said) so it really just depends on the size of the annuity as to which would be more profitable. An 1800/yr premium probably pays a med supp agent 360/yr (correct me @goillini52) so 1800 over 5 years.

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).

 

[Allen Trent]

They're really 2 completely different products (as you know) so you can't really compare the two.

Which pays more commission, solar installations or the car dealership?

Average 5 year comp is 2.5% (which is right where you said) so it really just depends on the size of the annuity as to which would be more profitable. An 1800/yr premium probably pays a med supp agent 360/yr (correct me @goillini52) so 1800 over 5 years.

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).

For sure. I think your specific examples are great & explain why there is almost no reps in annuity or even investments that handle small amounts. Especially when you realize all 65+ year olds are med supp prospects, but not all 65+ year olds have the liquid resources to make the annuity sake sizeable enough after having to find the money source in the 1st place

 

[goillini52]

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

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.

 

[scagnt83]

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.

You are correct in your line of thinking. Especially on the short term products, a lot of online sellers dont show the low comp options. They have to do what they have to do to make the money they need to make. Same as agents having a minimum premium to sell an annuity... cant work for less than a certain hourly wage. But as a consumer it is good to be aware of this.