Those Bonus Annuities

[Winter_123]

Some investors (myself included) have no problem giving up liquidity for guarantees. Between the bonuses (now up to 20%) and no risk of principal loss (unless of course the money is w/d early), I recommend these when they fit the client.

Over the past few weeks my clients have been calling non-stop, all with the same concern, "I want to retire in (10,12,15,20) years; how exposed are we to market loss?"

From a performance standpoint, my EIA has beat some of my retail accounts as far as return (and risk) are concerned. 100% participation, 2.5% monthly cap, no spreads, domestic & international indexing.

I have about 35% of my personal retirement assets spread between 2 Allianz EIA's. Yes, they have a 10 year surrender, but the operative word is retirement assets..... not spendable assets.

Just my $0.02.

I think that one can easily support EIA's where suitable but at the same time be against Allianz's products where you can get into the product but cannot walk away clean at the end of the surrender period. American Equity's products are better in my view.

There are many, many Allianz clients out there who do not know what the heck they have and how locked in they are, and the lawsuits will continue to grow. They are number one only due to marketing strength, not because they have a better product.

Winter

 

[senior-advisor-indiana]

I agree winter. Although I have talked to prospects that bought an ALLIANZ product and they were happy that thier kids couldn't get the money out all at once when they passed. I havent 't looked at thier products in a while but I just transfered my contract to another FMO. They said that Allianz has walkaway products now. All the lawsuits probably had an affect on that.

 

[slushhhpuppie]

they were happy that thier kids couldn't get the money out all at once when they passed.

On page 18 of every Allianz Annuity App the contract owner has the option to select a lump sum payout to beneficiaries, or a payout over 5 years.

An unhappy client is the direct result of an incompetent agent. If the writing agent purposely omits key product features just for a commission, then by all means, sue away.

Every client signs an 8 page Statement of Understanding (which is always product specific) detailing all features, surrenders and stipulations.

Bottomline.... although it is the agent's duty to educate the client on the product before ink hits paper, it is up to the consumer to know what they are getting into.

Suing Allianz because some cockroach agent made improper product recommendations is akin to suing Ford because someone in a Mustang ran me over.

 

[Winter_123]

I agree winter. Although I have talked to prospects that bought an ALLIANZ product and they were happy that thier kids couldn't get the money out all at once when they passed. I havent 't looked at thier products in a while but I just transfered my contract to another FMO. They said that Allianz has walkaway products now. All the lawsuits probably had an affect on that.

I think that they have always had walkaway products but thier biggest seller and the biggest seller in the country has been the Masterdex10, a bonus product with no walkaway which has been a real pain for regulators and clients. I would check to see if there is walkaway on that to know if the lawsuits have done any good.

Winter

 

[Winter_123]

On page 18 of every Allianz Annuity App the contract owner has the option to select a lump sum payout to beneficiaries, or a payout over 5 years.

An unhappy client is the direct result of an incompetent agent. If the writing agent purposely omits key product features just for a commission, then by all means, sue away.

Every client signs an 8 page Statement of Understanding (which is always product specific) detailing all features, surrenders and stipulations.

Bottomline.... although it is the agent's duty to educate the client on the product before ink hits paper, it is up to the consumer to know what they are getting into.

Suing Allianz because some cockroach agent made improper product recommendations is akin to suing Ford because someone in a Mustang ran me over.

Your reference to page 18 says that if the annuitant dies the beneficiaries can take a lump sum or a five year payout. Man, that's some walkaway provision. What if they live and just want to take their funds out at the end of the ten year period. I don't know- I am asking. I used to know but the lawsuits may have changed it so what does it say now. Not talking about beneficiaries. Talking about the annuitant.

Winter

 

[slushhhpuppie]

Your reference to page 18 says that if the annuitant dies the beneficiaries can take a lump sum or a five year payout. Man, that's some walkaway provision. What if they live and just want to take their funds out at the end of the ten year period. I don't know- I am asking. I used to know but the lawsuits may have changed it so what does it say now. Not talking about beneficiaries. Talking about the annuitant.

Winter

First, my reference to page 18 was in response to the idea (OP) that beneficiaries are forced to take 5 year payouts so that the evil insurance company could pilfer away any bonuses credited.

Second, if the writing agent did their job.... SCRUPULOUSLY.... the client would know whether or not they could take the money and run.

Do all Allianz bonus annuities have a walk-away?
No

Do some?
Yes

Do some agents need to either improve their reading skills or QUIT BEING SO DAMN GREEDY?
Absolutely. That would make our (READ: HONEST AGENTS) jobs a lot easier.

I recently sold two Allianz EIA's.... The PremierDex (a 5% bonus & 10 year walk away) and the Endurance 15 (a 20% bonus with no walk-away). Client A liked the bonus, but wanted complete freedom after the surrender period. The PremierDex fit. Client B LOVED the bonus (20%), but FULLY UNDERSTANDS that this will be his annuity product in both the accumulation phase, as well as the income phase.... and even further realizes that when he's gone, Allianz will pay a LUMP SUM to his beneficiaries. The Endurance fit.

In both cases the clients were educated on all of their options, educated on the details of the products considered, and made an independent, intelligent financial decision.

 

[senior-advisor-indiana]

You would think that if they are giving a 20% bonus that Allianz is doing this:bump: to the client by limiting the gains. They have to offset it somehow.