1. For agents, SPIA commissions are generally less than SPDA commissions, and SPIAs lock up the client's funds for life with little, if any, liquidity. Commissions range from 3% to 4%. One of the reasons why, is because for insurers, lack of profitability is key problem with the SPIA. Insurers are required to set up SPIA reserves that are often much greater than initial premium received. This results in surplus strain on the company. Yada-yada.
1.5. Approximately 30% of our annuity sales are SPIAs, because there are instances where they are very suitable for the client, especially for their investment diversification. Plus, many times the payments for the client are higher than a SPDA to begin with that has not accrued much.
1.75. Instead of worrying about commissions first, an agent's duty as an ethical agent, is to research the suitability for the client. If you do this, the money will come, and you will feel good about giving the best choice to your customers.
2. Which companies offer the best commissions? Again, if you look at commissions first, then your priorities may be wrong for the client. When you are handling someone's retirement portfolio, the most important thing is to find the most optimal choice that will benefit the client.
Last edited by BrokersAllianceAnnuities : 08-01-2008 at 10:59 AM.
I am trying to find a spia quote that can beat [COLOR=#008000]$126,361.28[/COLOR] for a 9 yr period certain with an A+ rated carrier starting with 100K. Any help would be greatly appreciated.
Equitrust seems to have the highest payouts I can find, I find it hard and time consuming to call around searching for SPIA quotes, and Equitrust has the quote engine on their website,no waiting for marketing to pick up calls etc. I was and am always curious if one Company was consistently giving out better payouts than others? especially life only payouts.....
Interesting how SPIA rates can change significantly over a short period. Couple of high-rated carriers have been shining lately. Competition is fierce, but it is the consumer's friend and ultimately the agent's friend if he/she is on top of things.
I have to run multiple quotes daily to make sure I stay current.
Did I miss something? There seems to have been a disconnect between SPIAs and SPDAs here.
I do have a couple of questions though. Is there a simple way to get premium tax info state by state? And, what is the best way to get a medically-underwritten SPIA? Thank you, thank you very much.
As for SPIA Quotes, you really have to shop them well to find the best payout. While a few like AIG & Equitrust are consistently near the top regardless of payout term, some companies are more competitve on say their liftime payouts whereas another is more competitive on short payout terms (5 or 10 yrs) because of minimal loading expense. They all seem to change frequently too, I have a format with the case criteria I fill out where I will just email it to the top carriers marketing depts and receive all the quotes back. Saves time and effort.
As for SPIA Quotes, you really have to shop them well to find the best payout. While a few like AIG & Equitrust are consistently near the top regardless of payout term, some companies are more competitve on say their liftime payouts whereas another is more competitive on short payout terms (5 or 10 yrs) because of minimal loading expense. They all seem to change frequently too, I have a format with the case criteria I fill out where I will just email it to the top carriers marketing depts and receive all the quotes back. Saves time and effort.
I'll give you a buck thirty five for a copy of that format
Did I miss something? There seems to have been a disconnect between SPIAs and SPDAs here.
I do have a couple of questions though. Is there a simple way to get premium tax info state by state? And, what is the best way to get a medically-underwritten SPIA? Thank you, thank you very much.
[COLOR=black]Mr. Bill, sorry for the delayed comment. [/COLOR][COLOR=#1f497d][COLOR=black]There should be tax information on the IRS website and State websites. Check to see if there is a link on your State's department of insurance website. Honestly, I have had better luck at finding tax information using Google, your State and "tax code on annuities." But, not trying to give you advice, but unless you are an accountant, it is best to not give too much tax advice, if any and suggest that you conference in the client's accountant. In other words, you do not want to ever risk being wrong on tax advice.[/COLOR][/COLOR]
[COLOR=#1f497d][COLOR=#000000]For a medically-underwritten SPIA, we just take the medical records of the client and do our own research and come up with the SPIA that is best suited. It may take making a couple of calls, etc. Usually we have 2 to 3 carriers for medically underwritten SPIAs. But, how you would do it? As an individual, you can acquire the medical records of the client and send to a couple carriers in the marketing dept. We have our own proprietary search system.[/COLOR][/COLOR]
Originally Posted by R. Paul Aguirre
I have an agent coming in today to pick up a West Coast Life SPIA app. Do you guys have any input on West Coast? Should I tell him to look at AIG?
R. Paul, why West Coast? Nothing against them, but as of late it is not that competitive. So, of the two you mention, West Coast or AIG, I would go with AIG. However, unless you do a current search, you do not know which other carriers may compete well.
Last edited by BrokersAllianceAnnuities : 09-07-2008 at 12:15 PM.
Single Premium Immediate Annuities
Linear Mode
