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North American or Midland National Life? Is there a significant difference in the products that they offer? Are their compensation packages about the same? Thanks in advance.
North American or Midland National Life
- Thread starter lgreen
- Start date
- 10,326
There are definite differences in the Annuities. The life is almost exactly the same.
1st year Street is slightly higher with NA on Term if I remember right. Many IMOs will give you over street with them.
You can get better residuals /trails with Midland. (they pay an asset based trail on IUL if you take a 20bps cut on 1st year)
Annuity comp is very similar.
Annuity rates are better with Midland. Annuity Renewals are much better with Midland.
I prefer working with Midland over NA. They are just easier to deal with on that side.
Midland is a better fit for the idependent agent. Compensation packet and products are very good.
- 8,707
But their annuity apps with all the boxes for each letter instead of a line drives me nuts.
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On the life side midland is hands down a better choice for the independent agent, as another has already mentioned. With the recent compensation changes midland has made regarding the expense allowance, even an average agent writing 50,000 dollars per year of premium will earn as much or more with midland than north american. And if your big producer they're top expense allowance package puts you at 135% first year commission on iul and 130% on term.
For someone planning on writing more than 20,000 of annual premium I couldn't think of a reason why I work with North American.
Finally, Midland has a unique option on their early cash value product (ec3 iul) with lump sums that is nothing like I've seen anywhere or any other company. If the S&P were to do 8% the client would realize a six percent profit in year one on the cash values. As opposed to putting non-qualified money in a fixed indexed annuity, this is a fantastic alternative that would actually yield greater returns give a set s&p 500 return, and give the client a death benefit and chronic illness benefit.
Midland is definitely firing on all cylinders right now
A word of caution about writing annuities with either Midland OR North American - make sure you sell it "clean". By that I mean disclose ALL of the withdrawal limitations. In fact, I would develop your own disclosure form that lists all of the policy terms and restrictions and get your client to sign it (leave them a copy) so that you can show that you haven't misrepresented the policy.
Midland and NA are constantly being sued in class action cases because of their sales practices. The most recent case in California last year has its own thread in this forum. The real risk with Midland and NA is that you could sell it using their sales materials and have Midland or NA make a full refund to the policy holder YEARS down the road in order to avoid litigation and then CHARGE YOU BACK all of the commissions they paid you .... and they're VERY aggressive about getting your commissions back.
Midland and NA are constantly being sued in class action cases because of their sales practices. The most recent case in California last year has its own thread in this forum. The real risk with Midland and NA is that you could sell it using their sales materials and have Midland or NA make a full refund to the policy holder YEARS down the road in order to avoid litigation and then CHARGE YOU BACK all of the commissions they paid you .... and they're VERY aggressive about getting your commissions back.
I believe North American's Rapid Builder IUL will give the waiver of surrender charges, indexed gains, and chronic illness. I am not sure if there have been changes with Midland to make it better. They are probably the same.
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Close but no cigar...
Although Midland and North Americans products appear identical they are not.... The caps are different on Midlands IUL's than on North Americans. For North American the rapid builder does have a waiver of surrender charge option however.
On the comp end, midland pays better renewals and almost twice as much on excess over target. I don't see the reasoning from the clients best interest or mine to choose North American over midland
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That might be true; however, it's probably a good idea to put EVERY PENNY they pay you into a separate bank account to be prepared for when they demand it back.
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Both companies are owned by sammons, so the reversal rules I believe are the same on both products, no?
I was only comparing North Americans product to midlands....not saying anything about the chargeback policies/rules...again I believe they are the same.
I am admittedly biased here as I am not a fan of the NA bga distribution structure. I like being able to call the underwriters whenever I need to speak to them
, which midland offers. NA will not allow agents to speak to underwriters in my experience and everything has to go through the bga middleman.
Given that admission though I still believe that midlands products are long-term a better option for my clients and will make properly servicing the business easier in my estimations compared to NA. I am aware of what midland has recently done in the annuity side regarding comp charge backs And I disagree strongly with the sentiment it displays....North american has the same decision makers at the top of the food chain.
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