Insurance Agent Forum

[Manteca]

I stumbled upon this ad the other day and I'm wondering what the story is with these products.

8.00 % to 9.00% All-Years

After-Market Fixed Term Income Annuities!

(Limited Inventory)

Purchase of Your Own Account or Facilitate the Purchase for Your Client as an Agent!
Priced to yield 8.00% to 9.00% Guaranteed All Years Regardless of Duration
Originally Issued By Highly Rated Companies such as Allstate, John Hancock, Metropolitan, New York Life, Prudential, Transamerica and more

- COMPARE THE INTEREST EARNED OVER 10 YEARS -

AA CARRIER DIRECT FIXED-TERM

ANNUITY AT 5.00% GUARANTEED $62,597

SAME AA CARRIER AFTER-MARKET FIXED-TERM

INCOME ANNUITY AT 8.00% GUARANTEED $115,892

The After-Market Fixed Term Income Annuity offers you guaranteed future payments from some of the same highly rated insurance companies but with a significantly higher rate of return than with a new direct purchase!

I emailed and phoned the MGA but have not yet received a response.

Does anyone know the scoop on how these work? They appear to be regular MYGA products issued through a variety of carriers - but somehow the MGA has a way of crediting an additional "bonus" rate on top of the standard rates. It sounds intriguing and a bit fishy at the same time.

[InsureGuy5]

I have never found something that is guaranteed to yield 3-5% more than the going average not to be fraught with some kind of risk.

[golfnut]

These are SPIA's that were purchased from the orginal owner's at a discount

[Manteca]

Originally Posted by golfnut

These are SPIA's that were purchased from the orginal owner's at a discount

Thank you. That certainly explains it.