Annuity Commission

[scagnt83]

and even the beneficiary at death was subject to the surrender charge and some of those products unless they annuitize the death benefit over a period of years.

There are still some products like this out there, but the period is fairly short, like in the 3-5 year range. Most clients dont seem to mind, especially with larger accounts. I would rather them do that than extend the surrender while living.

 

[Allen Trent]

There are still some products like this out there, but the period is fairly short, like in the 3-5 year range. Most clients dont seem to mind, especially with larger accounts. I would rather them do that than extend the surrender while living.

yup. that is reasonable time. if that wasnt a policy provision, the carrier likely wouldnt issue a policy to a person of that age or would have to pay a lower commission or have a commission back-out provision for death soon after purchase for the oldest ages

 

[PA Bill]

A manager once told me, "*** the clients. They're not the ones out there getting kicked in the balls everyday, YOU ARE!".

 

[Allen Trent]

Of course each carrier has different aspects to how comp and rates are dictated. But it doesnt change the fact that there are 100 pennies in a dollar. Give more to 1 of the 3 parties involved, it takes away from the other two. Its simple math and basic logic.

so true. here is a recent LIMRA chart from the "Low interest taskforce" presentation.

 

[bill3173]

If you sell them right, you don't have to look over your shoulder, instead, you have people thanking you, and asking for new recommendations.

If an agent is focused on commission, where annuity sales are concerned, he's going to be poorly informed, and sorry sooner or later. There are some great products out there, but you have to do your research, and the commission is never the highest.

 

[Life Hawk]

Not sure how you all position you sales, but mine is very simple. No risk to principle and tax shelter. Your average annuity buyer sees those two options at the top of the list most of the time in my experience.

 

[Allen Trent]

Not sure how you all position you sales, but mine is very simple. No risk to principle and tax shelter. Your average annuity buyer sees those two options at the top of the list most of the time in my experience.

100% agree that is at the top of most clients lists. However, the tax shelter at the top of their list is most often not in their favor or relevant unless they are higher income or it is non-qualified money.

Tax shelter isn't relevant if it is qualified as all qualified financial products are tax deferred.

For non-qualified, a tax shelter can actually be worse in the end tax-wise for the 65-70% of seniors in the 0 or 10% tax bracket. Tax deferring interest in the 0 or low bracket only to leave all the gains taxable I'm a lump sum to kids in higher tax brackets can cause the great tax shelter to be worse.

If insurable & not needed for income, I find a single premium or combo life/ltc to be a better tax shelter because it not only defers the gains, but also is tax free at death.

Billions on money just sitting in NQ annuity not being touched & compounded are a tax time bomb for many. With a standard deduction of 25k + for many seniors, some of those clients should be tax harvesting deferred interest off those at 0 or 10% & redepositing the money back in or elsewhere to keep the gains from compounding for a large tax bill at death

 

[Todd King]

In short my reply was to ensure the consumers and new agents looking into annuities do not get confused. These forms are not only seen by experienced agents. The initial start for this thread was from an agent looking to venture into annuities, and I wanted to ensure the basics of commissions were covered, because one of the first replies was misleading.

It is forUms, not forms.

 

[ColtenH]

It is forUms, not forms.

Thank you for your help Todd, that is a very constructive reply to this FORUM.

Should really focus more of your time on scamming a few more people with your IMO buddy. That'll be more beneficial.

 

[bill3173]

If we had to repeat the extreme basics on every thread, this forum would be a bore and nobody would ever post.

If you ever have a minute, you may want to read the Senior Forum. It really brings that sentence to life, except for the part about no one would ever post.