10% Bonus Annuity ?

[Charpress]

You have to be careful that you aren't mixing up the term "annuitize" with income riders.

When you annuitize an annuity contract, you convert it to an income stream and you have no options once you pull the trigger -you can no longer pull money out. That is the basic feature of all fixed/indexed annuities, including annuities with income riders.

With income riders, you get a guaranteed rate of return while deferred. You can turn on income whenever you want and you will know in advance, even many years in advance, exactly what that income will be at a minimum. Once you turn on income, you are not stuck -in most cases you can stop income and let the value increase again and/or pull out money.

And yes, North American and American Equity have 7% (recently reduced from 8%) income riders.

 

[Norwayguy]

You have to be careful that you aren't mixing up the term "annuitize" with income riders.

When you annuitize an annuity contract, you convert it to an income stream and you have no options once you pull the trigger -you can no longer pull money out. That is the basic feature of all fixed/indexed annuities, including annuities with income riders.

With income riders, you get a guaranteed rate of return while deferred. You can turn on income whenever you want and you will know in advance, even many years in advance, exactly what that income will be at a minimum. Once you turn on income, you are not stuck -in most cases you can stop income and let the value increase again and/or pull out money.

And yes, North American and American Equity have 7% (recently reduced from 8%) income riders.

Excellent post...To the original poster you need to be very careful with the term guaranteed earnings because once the client wants to take income they will want to know why their policy with "8% Guaranteed earnings" may only allow them to take 4%-5% per year. Rider Rollups are not earnings.

 

[bluemarlin08]

IMO, those income riders touting guaranteed 7 or 8% returns are very misleading. The only thing many clients hear is "guaranteed'.

 

[Guest]

I am new to annuities and cannot find an FMO who will do anything except for getting me contracted and giving me a list to cold call. Ok so I call someone and then make an Appt. Then what? What is the difference: Envoy, index 7, opportunities plus
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Which interest crediting method is best?

 

[Fisher]

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Which interest crediting method is best?

Personally, I like the one that pays me 24% commish.

 

[The Gimp]

I am new to annuities and cannot find an FMO who will do anything except for getting me contracted and giving me a list to cold call. Ok so I call someone and then make an Appt. Then what? What is the difference: Envoy, index 7, opportunities plus
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Which interest crediting method is best?

Whoever you contract with should have a case design team willing to do some research and assist you with finding the rigt product for your clients.

 

[JrGuru]

The only way for a client to benefit from an income rider is to activate the LTIB as soon as possible, also beware, just because a product has a "big" bonus, and attractive rollup rate doesnt mean the payout percentage will be best for your client. There only so many pennies in a dollar, beware of hype.
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I do think income riders are a great thing, as long as they are sold the right way.
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I am new to annuities and cannot find an FMO who will do anything except for getting me contracted and giving me a list to cold call. Ok so I call someone and then make an Appt. Then what? What is the difference: Envoy, index 7, opportunities plus
- - - - - - - - - - - - - - - - - -
Which interest crediting method is best?

IMO/FMO's look to contract producers that dont need hand holding. They preach a different story to get you contracted. They look to divert a stream not dig a well, but with that being said you should at a bare minimum recieve product advice and knowledge or move your contracts elsewhere. I work with several advisors that produce MM, that started with nothing, so dig in cold call, go door to door whatever you have to do to get started. My advice would be to look toward family and friends 1st to get a few cases under your belt.