- 148
I think he could have just meant an independent advisor that has their Allianz preferred license....
- 10,830
Im pretty sure that is what Josh was referring to... not much difference.
- 148
I took it as him correcting what Insurance Cat said about talking to his local Allianz preferred agent. I didn't see the need for the correction. Just because someone maybe appointed with an Allianz contract doesn't mean they only sell Allianz (like his Chevy example). They're still independent and can make recommendations of alternatives.
- 10,830
Allianz Preferred Agents might "technically" be independent agents. But they are Quasi-Captive. And to be honest, they operate under a model very similar to what many Captive agencies offer for experienced agents.
They usually have multiple financial incentives to sell Allianz over other Carriers. And they have yearly production requirements to stay a "Preferred" agent.
That is no different than how most captive life agencies work for experienced agents.... including NYL, Mass, Guardian, ON, Pru, MoO, Penn, etc. etc. etc.
Actually, Allianz is pretty smart in their Preferred scheme. They are shifting a huge portion of the cost of a Captive sales force over to the agents. And they get the same level of loyalty as a Captive sales force. I do respect the ingenuity!
There is a very dynamic difference between a true indy agent and most Allianz Preferred agents.
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- 148
Can you tell me where you're getting your information? Where are you seeing that a yearly production goal has to be met? Financial incentives? Ummmmm yes. They will give you higher commission if you sell more. I would figure that every carrier does that. I think maybe you have heard wrong about how this works. I know a ton of agents with Allianz preferred licenses that literally never write any allianz products. (Now some of you smart Alec's out there might say they are going to be termed on the 15th for not having done Allianz business for two years) But guess what? They send in one minimum contract and their license stays active. Are we considering that a "yearly production requirement?"
- 17,072
This is wrong info. I'm an Allianz Prefered agent and I put more business away from Allianz than with them, I'm pretty sure I qualified off total production rather than Allianz production. I think it required $1,000,000 annuity production with past 12-months.
There are other ways to qualify also. If you have a CPA, ChFC or CFP credentials you can qualify with no production requirement.
InsuranceCat
New Member
- 11
CR69, you may find it useful to do a web search for "ssa longevity calculator" and punch in your gender and DOB. Academics find that most people vastly underestimate (a few overestimate) their longevity. Here are a few quick links to search for:
1) Youtube: Allianz 300 Words. What was the major medical breakthrough in modern history?
Jay Olshansky PhD explains the major medical breakthrough in modern history.
2) Allianz Retirement Insights Study
3) Youtube: Allianz 300 Words. Is there a way to protect savings in 401(k) plans?
Head of OECD Private Pensions Unit Juan Yermo discusses how to protect savings in 401(k) plans.
In my opinion, Allianz's strength is in the rising income story backed by the fact they are the second largest money manager in the world. They have taken primary concerns that face the aging population and made it their business model to address those concerns. Thankfully, they have and encourage an independent distribution model.
The question that CR69 brought up point out to a couple of central common themes that retirees face. They are:
1) How do I find something simple and safe?
2) Time horizon, how do I calculate how long to make my money last, and since there are no do-overs, how do I know what I am doing today is the right thing? If I spend money today, how do I know that there is enough for tomorrow?
Most retirees also:
1) Do not like fees.
2) Are concerned about unexpected healthcare and LTC expenses.
3) Love their families, and/or
4) Want to enjoy life to the fullest. Who cares about beneficiaries when nobody bequeathed them anything before?
5) Are getting squeezed by the low interest rate environment and cannot live on CD and bank account interest alone.
Annuities are an extremely powerful tool that may be used to achieve and answer many of those concerns. Actually, only life companies can offer annuities that give lifetime income. These contracts in theory have the capability to be uniquely configured for the exact needs of the client.
In my opinion, the 222 can be a better than free retirement autopilot. I wrote my mom a 222 contract and she loves it!
222 in particular can be used as a 10 year program that has more liquidity than a CD AND it is also a lifetime pension-like program. When used for its intended design, it does not have any fees (such as income rider charges or principal protection charges) that would apply to the customer. Always and forever, the client and their family is guaranteed to get back all their money they put in plus minimum performance guarantees so as long as they hold it as for its intended use. The GMSV calculation as illustrated on the guaranteed schedule. I mentioned that CR69 should talk to their Allianz preferred agent because only Allianz preferred agents can provide advice on the 222 and run illustrations that show the guaranteed schedule (the worst case scenario), the historical illustrated ledger, and the last 10 years on repeat schedule. These illustrations are useful in managing client expectations and also helping the agent understand client preferences.
Lets talk about the points that retirees are looking for:
1) The 222 has no fees or charges that would apply to the client in its intended use situation. This is in an idealized situation where the client doesnt need more than the 10% free withdrawal starting year 2. However this "limitation" can be overcome by not buying too much of the 222. It is important to note the PIV bonused value is something that the client cannot say, after xyz number of years, transfer out into something like a mutual fund all in one shot or annuitize. The client is free to leave with no charges after 10 years with their normal accumulation cash value, just that they cannot walk away with the bonus at the same time in one lump sum. It is a bonus value for the lifetime income withdrawals or as a 5 year benefit for the beneficiaries. If the client is say after 11 years, accidentally loyal only half way and takes half of the cash value, the bonus is prorated down proportionally (all withdrawals proportionally reduce the bonus). The client has the freedom to ask Allianz for a lifetime PIV election payment and/or the freedom to do nothing and pass the enhanced benefit to the beneficiaries.
For FIAs, the crediting methods for the interest calculation all have some sort of upside limitation in order to provide the downside protection. The 222 has an uncapped crediting method that is simple to understand as it is annual point to point with annual reset, 100% participation, and a current spread of 1.5%. Most other annuities that are uncapped have some 5-7 year traveling block/rachet, ambiguously moving participation rates, and have ongoing account value fees and spread fees. Ongoing fees, such as rider charges in other annuities, may reduce the GMSV value, and this limitation is different state to state. The 222 is also RMD friendly.
Clients also can pair the free withdrawals the first 10 years and a PIV election after year 10 to create a stream of disbursements starting year 2. Want money the first year? Hold it yourself and do not put it in the contract.
2) Depending if your state allows for it, the 222 has a feature called the Allianz Income Multiplier that is a benefit that comes with no charge. If the client becomes ill and becomes hospitalized or enters into a nursing home, the income payout is doubled until the cash value is depleted, subject to limitations that are clearly listed in the brochure and contract. The *additional* benefit is that even when the account value is exhausted, the contract will resume its normal stable and growing PIV income payment! Seasoned agents would know this is highly unusual and a great benefit, as most of the time partial surrenders reduce future income value payments for any income rider annuity. A good question for your Allianz Preferred agent is if the AIM is available in your state.
3, 4, and 5) Annuities, in particular lifetime income annuities, offer mortality credits. Clients essentially get paid to hold the contract and they can maximize their spending and investing capabilities. When you look at illustrations and the product structure, you can tell that for older clients it offers the capability for rapidly increasing income even in a difficult interest rate environment. Mortality credits are something that academics agree benefit retirees immensely, but actually only a small minority of Americans annuitize their investments. Money is money, and money from interest credits and mortality/longevity credits go further than just strict interest alone.
The way I look at is: hey, the income rider is complimentary. So why not take advantage of it and intend to hold it for the lifetime income. If you are a conservative investor, why not get rewarded for something you are already doing? If something extreme happens and you need out, the free withdrawal is available years 2-10 and your free to completely leave after 10. The 222 is not designed for speculation and has charges that protect against it.
The 360 with the 360 rider benefit charge works well for clients that want future income. By deferring the payment, you can ratchet up the payout factor. There is only the enhanced accumulation value and the payout factor, so after the term, the client can take everything out at once and buy say a house or an island. If you were to compare the 360 with the 222, you should ask your Allianz Preferred agent for a side-by-side comparison and note the differing caps, spreads, fees, benefits, and limitations.
Regarding Allianz Preferred, this is a platform offered to independent agents that meet certain criteria. Personally I do think its trying to marry some of the benefits of captive agents with the benefits of independence. Eligibility is to agents that produce and/or have certain FINRA designations and/or have certain professional designations. Allianz Preferred also has a transparent compensation structure that makes the prior different levels into something flatter and more compatible to agents affiliated with broker dealers. For fixed annuities, compensation to agents come directly from the company and are not charged out of client account values.
1) Youtube: Allianz 300 Words. What was the major medical breakthrough in modern history?
Jay Olshansky PhD explains the major medical breakthrough in modern history.
2) Allianz Retirement Insights Study
3) Youtube: Allianz 300 Words. Is there a way to protect savings in 401(k) plans?
Head of OECD Private Pensions Unit Juan Yermo discusses how to protect savings in 401(k) plans.
In my opinion, Allianz's strength is in the rising income story backed by the fact they are the second largest money manager in the world. They have taken primary concerns that face the aging population and made it their business model to address those concerns. Thankfully, they have and encourage an independent distribution model.
The question that CR69 brought up point out to a couple of central common themes that retirees face. They are:
1) How do I find something simple and safe?
2) Time horizon, how do I calculate how long to make my money last, and since there are no do-overs, how do I know what I am doing today is the right thing? If I spend money today, how do I know that there is enough for tomorrow?
Most retirees also:
1) Do not like fees.
2) Are concerned about unexpected healthcare and LTC expenses.
3) Love their families, and/or
4) Want to enjoy life to the fullest. Who cares about beneficiaries when nobody bequeathed them anything before?
5) Are getting squeezed by the low interest rate environment and cannot live on CD and bank account interest alone.
Annuities are an extremely powerful tool that may be used to achieve and answer many of those concerns. Actually, only life companies can offer annuities that give lifetime income. These contracts in theory have the capability to be uniquely configured for the exact needs of the client.
In my opinion, the 222 can be a better than free retirement autopilot. I wrote my mom a 222 contract and she loves it!
222 in particular can be used as a 10 year program that has more liquidity than a CD AND it is also a lifetime pension-like program. When used for its intended design, it does not have any fees (such as income rider charges or principal protection charges) that would apply to the customer. Always and forever, the client and their family is guaranteed to get back all their money they put in plus minimum performance guarantees so as long as they hold it as for its intended use. The GMSV calculation as illustrated on the guaranteed schedule. I mentioned that CR69 should talk to their Allianz preferred agent because only Allianz preferred agents can provide advice on the 222 and run illustrations that show the guaranteed schedule (the worst case scenario), the historical illustrated ledger, and the last 10 years on repeat schedule. These illustrations are useful in managing client expectations and also helping the agent understand client preferences.
Lets talk about the points that retirees are looking for:
1) The 222 has no fees or charges that would apply to the client in its intended use situation. This is in an idealized situation where the client doesnt need more than the 10% free withdrawal starting year 2. However this "limitation" can be overcome by not buying too much of the 222. It is important to note the PIV bonused value is something that the client cannot say, after xyz number of years, transfer out into something like a mutual fund all in one shot or annuitize. The client is free to leave with no charges after 10 years with their normal accumulation cash value, just that they cannot walk away with the bonus at the same time in one lump sum. It is a bonus value for the lifetime income withdrawals or as a 5 year benefit for the beneficiaries. If the client is say after 11 years, accidentally loyal only half way and takes half of the cash value, the bonus is prorated down proportionally (all withdrawals proportionally reduce the bonus). The client has the freedom to ask Allianz for a lifetime PIV election payment and/or the freedom to do nothing and pass the enhanced benefit to the beneficiaries.
For FIAs, the crediting methods for the interest calculation all have some sort of upside limitation in order to provide the downside protection. The 222 has an uncapped crediting method that is simple to understand as it is annual point to point with annual reset, 100% participation, and a current spread of 1.5%. Most other annuities that are uncapped have some 5-7 year traveling block/rachet, ambiguously moving participation rates, and have ongoing account value fees and spread fees. Ongoing fees, such as rider charges in other annuities, may reduce the GMSV value, and this limitation is different state to state. The 222 is also RMD friendly.
Clients also can pair the free withdrawals the first 10 years and a PIV election after year 10 to create a stream of disbursements starting year 2. Want money the first year? Hold it yourself and do not put it in the contract.
2) Depending if your state allows for it, the 222 has a feature called the Allianz Income Multiplier that is a benefit that comes with no charge. If the client becomes ill and becomes hospitalized or enters into a nursing home, the income payout is doubled until the cash value is depleted, subject to limitations that are clearly listed in the brochure and contract. The *additional* benefit is that even when the account value is exhausted, the contract will resume its normal stable and growing PIV income payment! Seasoned agents would know this is highly unusual and a great benefit, as most of the time partial surrenders reduce future income value payments for any income rider annuity. A good question for your Allianz Preferred agent is if the AIM is available in your state.
3, 4, and 5) Annuities, in particular lifetime income annuities, offer mortality credits. Clients essentially get paid to hold the contract and they can maximize their spending and investing capabilities. When you look at illustrations and the product structure, you can tell that for older clients it offers the capability for rapidly increasing income even in a difficult interest rate environment. Mortality credits are something that academics agree benefit retirees immensely, but actually only a small minority of Americans annuitize their investments. Money is money, and money from interest credits and mortality/longevity credits go further than just strict interest alone.
The way I look at is: hey, the income rider is complimentary. So why not take advantage of it and intend to hold it for the lifetime income. If you are a conservative investor, why not get rewarded for something you are already doing? If something extreme happens and you need out, the free withdrawal is available years 2-10 and your free to completely leave after 10. The 222 is not designed for speculation and has charges that protect against it.
The 360 with the 360 rider benefit charge works well for clients that want future income. By deferring the payment, you can ratchet up the payout factor. There is only the enhanced accumulation value and the payout factor, so after the term, the client can take everything out at once and buy say a house or an island. If you were to compare the 360 with the 222, you should ask your Allianz Preferred agent for a side-by-side comparison and note the differing caps, spreads, fees, benefits, and limitations.
Regarding Allianz Preferred, this is a platform offered to independent agents that meet certain criteria. Personally I do think its trying to marry some of the benefits of captive agents with the benefits of independence. Eligibility is to agents that produce and/or have certain FINRA designations and/or have certain professional designations. Allianz Preferred also has a transparent compensation structure that makes the prior different levels into something flatter and more compatible to agents affiliated with broker dealers. For fixed annuities, compensation to agents come directly from the company and are not charged out of client account values.
- 8,707
It is not a license...You are an insurance agent which is where your license comes from. You are appointed with Allianz and the IMO you signed up under is operating on their Preferred contract.
- 148
Yeah that's why I was so confused by the statements being made. Preferred agents aren't captive at all. It's actually $600k annual production or $60k in commissions from life and annuities (business with any carrier. Not just Allianz). The titles you said are correct but they also just simply say hold a current series 6, 7 or 63 if you have had it for 3 years I believe. Meet one of those requirements and you qualify
----------
Haha thanks for the correction. When we get a new agent and they send in paperwork for carrier appointments, we call it "licensing." You know what I was referring to. I don't know what to tell you about our terms not matching up with what you say they should be.
- 10,830
From what I have found it depends on the IMO.
I am not an Allianz Preferred agent. But I have had IMOs try to recruit me under the program.
From my experience it depends on the IMO. Some want a minimum in Allianz premium, others let you hit minimums with total business under that IMO. Most that I have spoke to want a minimum commitment of Allianz premium.
Again, this is from my experience speaking with IMOs about being a "Preferred" agent.
Maybe they have backed off of the requirements since the program started. But from everything I have been told about the program, it is a quasi-captive setup.
I have run across plenty of Preferred agents out in the field over the past few years.
Scott,
you are in the minority. Most preferred agents write 90% of their business through Allianz.
Just my experience.
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