Allianz

[celiothrkn]

Whenever I talk to other agents, I always get a polarized view of Allianz - either on the life or annuity side. You're either a supporter who's all-in or a detractor who will never touch them. No one is ever lukewarm.

I can certainly understand the supporter's point of view. Just talk to the internal sales desk, and they'll tell you all about the innovation of index lock, etc.

For this forum post, I'm curious to hear the reasoning from the detractor camp, preferably in a *professional* manner so it's not a I-had-one-bad-experience-and-won't-give-them-a-second-chance sort of a story.

 

[fed up]

Does Allianz still pay commission on an annuity from the annuity deposit? I saw a 100K deposit turn into a 90K account when the agent made her 10K commission. The annuity HAD to be annuitized in order to see the gain after 10 years. Is this still the case with Allianz?

 

[Allen Trent]

Does Allianz still pay commission on an annuity from the annuity deposit? I saw a 100K deposit turn into a 90K account when the agent made her 10K commission. The annuity HAD to be annuitized in order to see the gain after 10 years. Is this still the case with Allianz?

Ding Ding Ding. This is when I started being a detractor. Whether they were the inventor or not, I watched too many seniors in their 80s & 90s break down in tears from the Allianz 2 Tier annuities that were made to appear to have very good growth values but the only way you could ever access that money was to annuitize in a low interest annuitization. The real cash value that they could access was like a paltry 1-2% rate on 87.5% of their original money. Class action lawsuits & Attorneys General from several states investigations, etc.

These product sales along with a few others in the early days of EIA caused Annuity applications to go from 1-2 pages to literally a dozen now with the suitability regs, etc

These 2 tiered annuities paid the highest commissions, sometimes 3-5x more than could be earned than a run of the mill MYGA that they ended up earning returns like (but worse).

Lastly, I believe even at death the beneficiary had to annuitize to get the higher valued 2 tier account.

 

[Life Hawk]

Used them in the past and they worked well then. The market has changed and continues to change because of the artificial tinkering that has gone on over the last several years. I no longer write them but have not opinion either way.

I used the master dex products when they were a real producing product. My personal belief is they have neutered the product like most have.

 

[fed up]

I worked for 2 years to get a customer to transfer his Allianz anuity to me which I could have included a 4% bump in value of the fund. He had been burned by 1 agent and never felt that he could trust another even with the paperwork to show the bump, the fact that he would not have to annuitize to get the gain, or to see more money at the end of the term. I think the old agent pulling up in a new vehicle a week after taking his money threw him for a loop and then she showed how much his account had been reduced by taking the annuity. Never got the sale

 

[fed up]

I worked for 2 years to get a customer to transfer his Allianz annuity to me which I could have included a 4% bump in value of the fund. He had been burned by 1 agent and never felt that he could trust another even with the paperwork to show the bump, the fact that he would not have to annuitize to get the gain, or to see more money at the end of the term. I think the old agent pulling up in a new vehicle a week after taking his money threw him for a loop and then she showed how much his account had been reduced by taking the annuity. Never got the sale but sure learned alot

 

[pfg1]

Does Allianz still pay commission on an annuity from the annuity deposit? I saw a 100K deposit turn into a 90K account when the agent made her 10K commission. The annuity HAD to be annuitized in order to see the gain after 10 years. Is this still the case with Allianz?

I have not seen that. Maybe that is the old way, but not now. I did an Allianz index annuity for a client last year, product has no fees to the client at all, commission was paid by company not out of his money. He earned 8.07% on his contract value, 12.11% on his income rider. Obviously that was a banner yearly return, above what is typical. His walk away after year 1 (including surrender charges for 10yrs) is slightly above his initial contribution. He does not have to annuitize to get his money.

 

[Newby]

My own personal Allianz annuities have performed great. I’m not sure what the name is but I bought within the last 5-years. It’s indexed by the Barclays Index.

 

[Allen Trent]

My own personal Allianz annuities have performed great. I’m not sure what the name is but I bought within the last 5-years. It’s indexed by the Barclays Index.

Yes. They are much better now that the class actions & regs made the 2 Tiered unsuitable or illegal in some states. It shouldn't require that to get a carrier or industry to be more consumer friendly. It is why we have some increased regulations on occasion. Just a matter of time until new regs hit the IUL multiplier illustrations too

 

[DHK]

Some people don't like Allianz because of their reputation made in this Chris Hansen expose:

Tricks of the trade