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I got a robo call from some FMO about a new EIA approved in my state with a 30% bonus (!) and a 8% roll up? Anyone know what this is? I assume it is something to run away from but I am still curious.
A New EIA with 30% Bouns with a 8% Rollup?
- Thread starter Freddie
- Start date
- 8,707
30% bonus...Can you imagine the things you must do to actually keep the bonus...No insurance company can create 30% out of thin air any bonus is recaputered over a surrender period with lower caps / spreads over a non-bonused product..But the time to recover 30% and make a carrier a profit scares the cr@p out of me. Plus throw in an income rider.
Hold on maybe the 30% bonus goes the income benefit still it sounds like throwing things in there to make the consumer think they are getting something they are not.
Hold on maybe the 30% bonus goes the income benefit still it sounds like throwing things in there to make the consumer think they are getting something they are not.
Maybe Forethought I know they had a 25% income bonus, my guess is its them.
Freddie,
I got the same call this morning. 30% refers to whatever income rider is available on that annuity.
Income riders have their place like everything else, but when you advertise a 30% bonus and 8% rollup without specifying it is on future systematic withdrawal, you are begging for trouble. Agents who have never written an annuity will not understand it, much less the prospects they sell it to.
I got the same call this morning. 30% refers to whatever income rider is available on that annuity.
Income riders have their place like everything else, but when you advertise a 30% bonus and 8% rollup without specifying it is on future systematic withdrawal, you are begging for trouble. Agents who have never written an annuity will not understand it, much less the prospects they sell it to.
For those of us that understand the income riders...what's the details? Just got a call from a client today that we did an income annuity for last year with RBC that is looking for another one, but with a 5-7 year time horizon for taking withdrawals instead of 10 or 12. Sounds like this would work, but I know there's no such thing as a free lunch...
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Phoenix Life is the answer.
And there are 3 options for the income rider. 8% rollup, 25% bonus, OR increased payout %. Notice the "or" in there. The maketing ploy is to combine those options with the 5% premium bonus to make it sound like a killer product. Problem is you can only pick one of the options.
If you are into income rider products, it is worth doing the math as they do stand with the others in this regard.
As for the question about a 5-7 year income rider product - just turn on the income stream when needed...be sure to pick a product that doesn't have a vesting period which doesn't agree with your income start date.
And there are 3 options for the income rider. 8% rollup, 25% bonus, OR increased payout %. Notice the "or" in there. The maketing ploy is to combine those options with the 5% premium bonus to make it sound like a killer product. Problem is you can only pick one of the options.
If you are into income rider products, it is worth doing the math as they do stand with the others in this regard.
As for the question about a 5-7 year income rider product - just turn on the income stream when needed...be sure to pick a product that doesn't have a vesting period which doesn't agree with your income start date.
They're also B+ rated...pass. Thanks for clarifying though.
- Thread starter
- #9
- 429
This is what I was thinking. I just called the robo phone number and it is Dallas Financial Wholesalers aka Ron Rawlings
Here it is 30% bonus. Day one, dollar one. 8% annual compound roll up. Company 160 years old.
https://www.ronrawlings.com/30_Bonus_B_site.html
Now I am more curious. 160 years old? It cannot be American Equity obviously or Allianz or Aviva. Has Forethought been around that long? Canandian - Sun or RBC??
