Hi guys so I recently got my annuities cert and am being deemed the "go-to-guy" at our agency in regards to annuities. Do any of you have a fact finding sheet or suggestions that might help me when asking for information from our clients or agents? I know life insurance well but when it comes to clients needs in annuities at this point I can say I am next to clueless. Any help would be great.
You get a big case and want help I'll fly out and write it up for a 50% commission split. You are not going to learn enough here to make you the annuity go to guy.
Annuities are not easy. It takes a broad range of experience to write a suitable and appropriate annuity. Your buddies are either inexperienced in annuities or lazy.
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Chuck
If you think your boss is stupid, remember: you wouldn't have a job if he was any smarter.”
Surprising - annuity business can be somewhat profitable. Start by asking the clients if they have any cd's and what the interest rate is. Then find out what their tax bracket is. Then talk about tax deferral and lifetime income streams.
There is quite a bit of annuity information on our site as well as some online presentations. Feel free to take a look.
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A.M. Hyers
Hyers and Associates, Inc.
Surprising - annuity business can be somewhat profitable. Start by asking the clients if they have any cd's and what the interest rate is. Then find out what their tax bracket is. Then talk about tax deferral and lifetime income streams.
Don't forget to mention caps, spreads, participation rates, MVA, and withdrawal penalty periods. Then move on to company solvency and NAIC guarantee funds.
If you want to limit things to CD replacements, then talk about MYGAs and back again to tying money up, withdrawal penalites, and how the money is insured (or not insured).
No, there is much too much about annuities to take an easy route. Clients have to go through a learning experience to figure out whether an annuity is the thing for them and you have to know enough to be the teacher.
Until tomorrow. Gafri is unleashing the FIA for dummies. ROP built in; bail-out provision; Options are m.a., pt-to-pt or fixed.
Interesting commission options as well. Can still get 1st year lump, but have option of taking a % of account value for each year the client has annuity. So you can create a stream which increases in up years.
Thanks for the replies guys. Ok I swear this isn't spam but I was directed to a website that has been very informative- once again I am not tied to this site at all I just thought I would share with you guys. annuityadvisors.com This place is the shiznit. This shows you the top rates for MYG 1-10 on the front page then you can go a little deeper and look through the top indexed, traditional and immidiate as well as more myg's. You still have to send a written request for illustrations though, but not everything can be perfect.
Until tomorrow. Gafri is unleashing the FIA for dummies. ROP built in; bail-out provision; Options are m.a., pt-to-pt or fixed.
Interesting commission options as well. Can still get 1st year lump, but have option of taking a % of account value for each year the client has annuity. So you can create a stream which increases in up years.
Is there a product brochure available yet for this?
Until tomorrow. Gafri is unleashing the FIA for dummies. ROP built in; bail-out provision; Options are m.a., pt-to-pt or fixed.
Interesting commission options as well. Can still get 1st year lump, but have option of taking a % of account value for each year the client has annuity. So you can create a stream which increases in up years.
I wouldn't term this product a FIA for dummies....You need to understand how the Return of Premium feature works...and how the Bail out caps work to properly explain to your customer how this works...this is a perfect example
Customer deposits 100K into Safe Return FIA and in year 1 gets an 8% return on policy aniversary the clients sees policy B sold by another company is offering a 20% cap and Great American is offering only a 10% cap and remembers that you mentioned bailout provisions and return of premium and said this is the FIA for dummies client wants to move 100% or fully surrender Safe Return to transfer to policy B so client elects to pull money out but is upset because he transfers only 100K to policy B Great American keeps the 8K yes there is a waiver of the surrender charge and client redeems 100% or purchase payments. Also there is a 2 year 100% commission charge back on this product.
Also these additional guarantees for the client have a cost. If you compare Safe Return to Flexmax a product with a lower minimum, shorter surrender and about 1.25% higher caps but without the additional bailout features so you need to explain all this to your client.
Crap. I tried to sit through that 15 minute learning experience and my eyes just glazed over. Good luck explaining that to a client. I quit half way through.
Crap. I tried to sit through that 15 minute learning experience and my eyes just glazed over. Good luck explaining that to a client. I quit half way through.
Is it just me or has GAFRIs literature about Index products been going downhill?
If a new agent were to sell an average fixed index annuity of $150K with perhaps alliance, aviva,american equity etc..what would the agents average commission be?????
Well unless you are already licensed with Aviva or can find a marketing group that has not gone over their quota then you can forget about any of their products for this year. If you can find an aviva agent their 10% bonus product is going down to 6% by the 17th I believe so you had better get those apps in boys.
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Originally Posted by jmhopkins40
If a new agent were to sell an average fixed index annuity of $150K with perhaps alliance, aviva,american equity etc..what would the agents average commission be?????
Well as far as etc. goes
Lincoln Financial
Integrity Life
Americo Financial all have products that offer 5%
Last edited by R. Paul Aguirre : 07-09-2009 at 11:46 AM.
Reason: Posts merged
If a new agent were to sell an average fixed index annuity of $150K with perhaps alliance, aviva,american equity etc..what would the agents average commission be?????
Well the Average premuim for an annuity is closer to about $50,000 to $60,000 I beleieve industry wide so $150,000 would not be average but that aside it depends on what product you sell.
There are longer and shorter surrender schedules and bonuses, etc which all figure into things. Typically if you offer a bonus product the commission is a little smaller than a product with no bonus but this is not always the case just a general rule. If you offer a longer surrender product the commission is often little higher. It also depends on what level contract you have, the age of the client is very important to know as some have lower commissions for older aged clients, and also the company as different company's have different commission structures. You can also choose with some company's if you want all your commissions up front or paid as a trailing commission over a number of years.
Bottom line is that it can range from 2% to 9% with most falling in the middle of that. I think I read someplace an average was around 5-6%??? I can't really remember but I think that sounds about right. ALso commissions have been dropping over the past year so this number may be even a little smaller now. Aviva, and Equitrust had massive commission reductions and others also had changes as well.
Some that were 9% at street went to 8%, and are now going down to 7%.
This is a trend. The companies are cutting corners and I think some of the big shots at Allianz and the others had this conversation in the last 2 years:
"We have reserve requirements starting to squeeze us, we have regulators that before long will make us disclose commissions, we are in a sellers market where we can compete one-on-one with the big brokers for investor money, what can we do to make more money?"
Head scratching for a few seconds, then:
"Say why don't we cut commissions in half or maybe by two-thirds? Of course we won't do it all at once..."
New to Annuities
You are not going to learn enough here to make you the annuity go to guy.
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