Annuity Commissions

[Minthill62]

I've been on the final expense area for a while and first time here. Annuities are new for me and the agency I work with pays us 5 to 7% for the sale. I wanted to get some information here so I know what to expect. What is the total commission paid to the agency of which, I get the 5 to 7%? Also, I am appointed with Allianz directly. Would I do better working with them since they have a great support staff? What would commissions be with them directly?

I do know that having someone in the agency that is experienced with annuities has it's advantages not just to me but mainly for the client. I'm 90% likely to use that help especially at the beginning but I do want to know the haircut I am getting working through them. Thanks in advance for any help.

 

[Newby]

I've been on the final expense area for a while and first time here. Annuities are new for me and the agency I work with pays us 5 to 7% for the sale. I wanted to get some information here so I know what to expect. What is the total commission paid to the agency of which, I get the 5 to 7%? Also, I am appointed with Allianz directly. Would I do better working with them since they have a great support staff? What would commissions be with them directly? I do know that having someone in the agency that is experienced with annuities has it's advantages not just to me but mainly for the client. I'm 90% likely to use that help especially at the beginning but I do want to know the haircut I am getting working through them. Thanks in advance for any help.

Depends on the length of the annuity and how much production your agency sells.

Sounds to me like you should put your Allianz through the agency also. Going direct doesn't get you any additional commission but it does cut out the assistance of your up line. If you think Allianz is going to tell you when they are not the best choice but another company's product is, you aren't thinking things through.

You should only go direct if you have a great handle on every company's products that you are using. Especially annuities.

 

[Norwayguy]

I've been on the final expense area for a while and first time here. Annuities are new for me and the agency I work with pays us 5 to 7% for the sale. I wanted to get some information here so I know what to expect. What is the total commission paid to the agency of which, I get the 5 to 7%? Also, I am appointed with Allianz directly. Would I do better working with them since they have a great support staff? What would commissions be with them directly?

I do know that having someone in the agency that is experienced with annuities has it's advantages not just to me but mainly for the client. I'm 90% likely to use that help especially at the beginning but I do want to know the haircut I am getting working through them. Thanks in advance for any help.

This seems to be all about comp. What your agency makes does not matter. You recieved a comp schedule on the products and agreed to it.

Since you did not ask why products would be the best fit for clients your message reads very much like all you care about is comp. The fact is these annuities can be very beneficial to the client but also harmful if you put them in too long of a surrender period or to high of a surrender charge.

 

[Minthill62]

Depends on the length of the annuity and how much production your agency sells.

Sounds to me like you should put your Allianz through the agency also. Going direct doesn't get you any additional commission but it does cut out the assistance of your up line. If you think Allianz is going to tell you when they are not the best choice but another company's product is, you aren't thinking things through.

You should only go direct if you have a great handle on every company's products that you are using. Especially annuities.

Thanks, Scott. My upline is a very experienced financial planner and my main focus is on the client. I understand the value of his experience so we do the right thing for my client. I really just wanted to get an idea of commissions since I'm just learning the annuity side.

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This seems to be all about comp. What your agency makes does not matter. You recieved a comp schedule on the products and agreed to it.

Since you did not ask why products would be the best fit for clients your message reads very much like all you care about is comp. The fact is these annuities can be very beneficial to the client but also harmful if you put them in too long of a surrender period or to high of a surrender charge.

Your comments are noted. I want to be really clear here. The client is a very good friend and I will be working with my upline to do what is best for her. My upline is a seasoned financial planner and I will work through him. My commission questions were to understand the range and how it works. Agencies too many times lie to us about what we get and what they get. I was mainly trying to get educated so I'm not being taken advantage of. Also, I have nothing in writing from my upline as to commissions so I'm taking it on faith. I will tie all this down before we call on the client together.

 

[ThatGuy22]

Depends on the length of the annuity and how much production your agency sells.

Sounds to me like you should put your Allianz through the agency also. Going direct doesn't get you any additional commission but it does cut out the assistance of your up line. If you think Allianz is going to tell you when they are not the best choice but another company's product is, you aren't thinking things through.

You should only go direct if you have a great handle on every company's products that you are using. Especially annuities.

You are definitely going to need some guidance when placing a client in an annuity. Do not try to go direct if you don't know the product as the products are a lot more complicated and complex than FE.

 

[Charpress]

The last guy who tried to recruit me based solely on the commissions he was promising (at least 2% above street) is now serving 15 long ones in federal prison for selling securities without a license.

But your question which really deals more with how much is "lost" in the food chain is relevant. I long ago decided that I would not begrudge whatever other people get out my sales as long as I got more in value from them than the cost to me -and that is assuming I would even have the clout to cut out some of that commission leakage.

 

[RJ77]

anyone here aware of Allianz chargebacks on commission?? wondering how they can chargeback 100% of the commission after policy was in force for 9 years....

this policy was part of their class action lawsuit as they falsely represented the product with documents that didn't explain the product correctly...

However just wondering how they can come back 9 years later to the agent??

thanks for your help!

 

[Charpress]

anyone here aware of Allianz chargebacks on commission??

The only chargeback I ever had from Allianz was very small, thankfully. It was a canceled policy during the lookback. So, no surprises -it was what i agreed to in the contracting: chargebacks for canceled policies in the first year.

But 9 years? Is this something that happened to you or is it something you heard about?