7% Minimum Lifetime Guarantee

[arnguy]

I received a mailer a few days ago regarding this annuity product that offers a 7% Commission (76-85=4.50%). 10 Year Withdrawal Fee, 10% Annual Penalty Free Withdrawal. Penalty Free Lump Sum Death Benefit, Nursing Home Withdrawal Benefit. OMG, it's almost too good to be true. The Catch-22----it is issued by Bankers Life Insutance Company of St. Petersburg, FL. A. M. Best recently upgraded the comaopny from B- to B+. Risky, risky!!!

 

[njh_lfg]

Confusing post, you mean 7% payout for lifetime income or guaranteed 7% interest? One or two tier?

 

[bluemarlin08]

I'm sure it is lifetime income, do the homework.

 

[arnguy]

I'm sure it is lifetime income, do the homework.

You are correct,sir.

 

[njh_lfg]

I'm sure it is lifetime income, do the homework.

Sorry, not going to waste time looking for a product from Bankers that I would never use regardless of how great it was.

 

[redkee]

I believe this is the same company that sold their FE business a few years back.I didn't mind the rating when it was for FE.

 

[xrac]

Do your due diligence and stick with companies with better ratings.

 

[arnguy]

They must use smoke and mirrors for this product, The usual scenarion is the higher the Interest rate the lower the commission. Something has got to give. Anybody have any experience with this company? Even with the state guarantee funds, I would be hard pressed to sell this. I'd rather sell annuities from a solid fraternal that isn't covered by the guarantee fund.

 

[lbritt]

They must use smoke and mirrors for this product, The usual scenarion is the higher the Interest rate the lower the commission. Something has got to give. Anybody have any experience with this company? Even with the state guarantee funds, I would be hard pressed to sell this. I'd rather sell annuities from a solid fraternal that isn't covered by the guarantee fund.

The Index Select Gold Bonus product from Phoenix (B+ as well) is similar to this one:

Issue 0-85
Street Comp: 7.5% 0-75; 5% 76-80; 3% 81-85
10 Year Chassis
10% Free WD all years
8% Premium Bonus w/ recapture
8% Compound Rollup for 10 years
100% Terminal Illness Waiver
100% Nursing Home Waiver

The nuts and bolts of the product are fantastic. Most insurance professionals that don't sell it simply do it because of the rating and nothing else.

 

[padthaiforlunch]

Midland national has something similar, and they are A+ rated.

10 year, 10% bonus, 8% roll-up, nursing home rider, db, and a ltc rider in certain states.