Looking for Flexible Premium EIA with E-App

[Norwayguy]

I am looking for an Indexed Annuity that can be started with as little as $50/month in a monthly bank draft and I am looking for a company that can allow me to set this up using some sort of E-APP. I am aware of both of these things but not in 1 company...

 

[insuranceexec]

I am looking for an Indexed Annuity that can be started with as little as $50/month in a monthly bank draft and I am looking for a company that can allow me to set this up using some sort of E-APP. I am aware of both of these things but not in 1 company...

Once an EIA is issued they will not let additional premiums be credited to the indexed strategy for obvious reasons, they will apply any additional premiums to the fixed strategy.

Generally you are given an opportunity every anniversary to reallocate; but would this not negate the very reason you would want to use an EIA?

In reading some of your past posts; I am sure that you already know this, but thought I would try to help anyway.

 

[Norwayguy]

Once an EIA is issued they will not let additional premiums be credited to the indexed strategy for obvious reasons, they will apply any additional premiums to the fixed strategy.

Generally you are given an opportunity every anniversary to reallocate; but would this not negate the very reason you would want to use an EIA?

In reading some of your past posts; I am sure that you already know this, but thought I would try to help anyway.

Actually that is not correct there are Indexed Annuities that are set up to accept ongoing additional premiums and credit those premiums once or twice such as Annuity Investors FlexMax series of products....I was just wondering if anyone out there was aware of a company that offered something similar with an e-app...Actually I could live with out the e-app its just AILIC is really weired with Bank Drafts they will not draft premiums even after you complete there Bank Draft form and provide a voided check till you also provide a live check for $50 since I am moving to an over the phone/email model I was trying to avoid the need for a real check as opposed to faxs.

 

[sman]

Once an EIA is issued they will not let additional premiums be credited to the indexed strategy for obvious reasons, they will apply any additional premiums to the fixed strategy.

Generally you are given an opportunity every anniversary to reallocate; but would this not negate the very reason you would want to use an EIA?

In reading some of your past posts; I am sure that you already know this, but thought I would try to help anyway.

Sorry William, but you are incorrect. I know of at least two carriers who are in the 403b market and allow ongoing contributions to the indexing strategy. Midland and Life of the Southwest are the two carriers.

As for the original posters request, I don't believe either carrier will do an e-app. There are way too many suitability requirements and disclosures for that to work.

 

[Norwayguy]

Sorry William, but you are incorrect. I know of at least two carriers who are in the 403b market and allow ongoing contributions to the indexing strategy. Midland and Life of the Southwest are the two carriers.

As for the original posters request, I don't believe either carrier will do an e-app. There are way too many suitability requirements and disclosures for that to work.

Do you know if they have these products for IRA...The AILIC products I mentioned are available but its just there refusal to draft premium without recieving at least 1 physical check first which means having the client mail something which in my experience more than doubles the factor of them not doing anything.

 

[sman]

Do you know if they have these products for IRA...The AILIC products I mentioned are available but its just there refusal to draft premium without recieving at least 1 physical check first which means having the client mail something which in my experience more than doubles the factor of them not doing anything.

I sent you a PM. Yes, you can set it up as an IRA. However, the initial contribution is required. Whether it's $50 or $5,000. If that's a deal breaker for the client, they may not be a great client.

 

[insuranceexec]

Actually that is not correct there are Indexed Annuities that are set up to accept ongoing additional premiums and credit those premiums once or twice such as Annuity Investors FlexMax series of products....I was just wondering if anyone out there was aware of a company that offered something similar with an e-app...Actually I could live with out the e-app its just AILIC is really weired with Bank Drafts they will not draft premiums even after you complete there Bank Draft form and provide a voided check till you also provide a live check for $50 since I am moving to an over the phone/email model I was trying to avoid the need for a real check as opposed to faxs.

What crediting method would you use?
- - - - - - - - - - - - - - - - - -

Sorry William, but you are incorrect. I know of at least two carriers who are in the 403b market and allow ongoing contributions to the indexing strategy. Midland and Life of the Southwest are the two carriers.

As for the original posters request, I don't believe either carrier will do an e-app. There are way too many suitability requirements and disclosures for that to work.

What crediting method would the company use? It is great if I am wrong, but am still wondering; how they would calculate the growth. I thank you for your reply.

 

[Norwayguy]

I sent you a PM. Yes, you can set it up as an IRA. However, the initial contribution is required. Whether it's $50 or $5,000. If that's a deal breaker for the client, they may not be a great client.

Its only a issue as I move towards an over the internet and phone model....every other company ie mutual funds or variable annuity I have ever used that allowed the account to be funded via automatic draft has allowed the first premium to be the drafted premium which is somethign that can be accomplished entirely via fax. You are right that is the great scheme of things that someone unwilling to cut a check for $50 might not be a great clients but the issue is one of control with the more hands off fax/email approach it just seems to me that it now requires the client to fax in the paperwork and mail a check or mail the entire packet..I've been rewriting about a 1/3 of my 403(b) clients the past few months due to the new regulation vie email,phone conversations and fax and have found that it is very different then in person sales it requires more follow up I think the more you require a client to do the more you will lose perfectly good clients who has ever down a rapid term from fidelity and can't seem to get the client to spend the 2 minutes to e-sign, this could be a perfect client one too lazy to ever stop the deductions.
- - - - - - - - - - - - - - - - - -

What crediting method would you use?
- - - - - - - - - - - - - - - - - -



What crediting method would the company use? It is great if I am wrong, but am still wondering; how they would calculate the growth. I thank you for your reply.

They have 3 options..declared rate which is obvisouly not in index option a monthly average and pt to pt...the product works this way all money comes in and goes into a purchase payment account earning interest and each 6th and 20th of the month the purchase payment money is swept into index creditting options...It at first glances seems crazy that a company would be going nuts with all these different credits but it is only 24 different periods of time for every policy and its the same 24 periods.

 

[sman]

William,

I stand corrected with the Midland product. The initial contribution is put into the index method and subsequent contributions for the year are placed in the fixed account and then moved to the indexing strategy on the contract anniversary.

I've been told by a rep with LSW that they do it similar to what Norwayguy described in his reply.

Sorry about that. I believe in years past that Midland did this as well, but in looking over their products today, they do as I described above. They do, however, allow monthly contributions.

 

[insuranceexec]

Its only a issue as I move towards an over the internet and phone model....every other company ie mutual funds or variable annuity I have ever used that allowed the account to be funded via automatic draft has allowed the first premium to be the drafted premium which is somethign that can be accomplished entirely via fax. You are right that is the great scheme of things that someone unwilling to cut a check for $50 might not be a great clients but the issue is one of control with the more hands off fax/email approach it just seems to me that it now requires the client to fax in the paperwork and mail a check or mail the entire packet..I've been rewriting about a 1/3 of my 403(b) clients the past few months due to the new regulation vie email,phone conversations and fax and have found that it is very different then in person sales it requires more follow up I think the more you require a client to do the more you will lose perfectly good clients who has ever down a rapid term from fidelity and can't seem to get the client to spend the 2 minutes to e-sign, this could be a perfect client one too lazy to ever stop the deductions.
- - - - - - - - - - - - - - - - - -


They have 3 options..declared rate which is obvisouly not in index option a monthly average and pt to pt...the product works this way all money comes in and goes into a purchase payment account earning interest and each 6th and 20th of the month the purchase payment money is swept into index creditting options...It at first glances seems crazy that a company would be going nuts with all these different credits but it is only 24 different periods of time for every policy and its the same 24 periods.

Well I thank you for teaching me. It does seem odd that a company would be willing to calculate the different credits. I do have one further question: Providing $100 was used to start the contract; $100 per month. We will use annual pt. to pt. for the example. Lets say the S&P 500 is the indice, and it returned 10%. Thanks for your help.

How much interest is calculated at the end of the year?

the reason I ask is the money deposited at the end of the term going to earn the same amount of money as the first premium deposited or do they pro-rate it.