Why are you using an IMO for Midland? You can write them direct.......
Why are you using an IMO for Midland? You can write them direct.......
- 10,829
The correct phrase then would be "compensation" not "payout". In the annuity world a "payout" is the % they pay in income to the Annuitant.
One or two of the 14 year Midland Products do pay up to 9%. The problem you have is that you are using an IMO and not contracting directly with Midland.
Most annuity carriers require an upline. When they build in the compensation, they have agent comp, and then the upline gets overrides directly from the carrier.
But Midland does not require an upline, so they pay no overrides. That means that if an IMO offers Midland to agents, they have to reduce the normal "street" comp to make money.
That means that your IMO is taking a 50% cut of the compensation paid on that product. (which is totally absurd)
If you want to sell Midland just call the company and contract directly. Then you will be paid the full 9%. Or you can contract through me and I will only take a 25% cut
BoomBoom68
Expert
- 61
Thank you for explaining ... No, I recently wrote two annuities and was paid 4.5% ... I have a friend who said he knows someone who wrote two Midland annuities and his payout was 9% ... I was just wondering if that was really out there ... Thanks again ?
- 10,829
Well it all depends on the annuity. Midland has a bunch of different annuities and they all pay different comp. The longer the surrender the higher the comp. 9% is only available on their 14 year surrender products.
But if you are going through an upline then they are taking a cut of street comp. Midland has really good internal wholesalers who can help you with sales. There is absolutely no need to use an IMO to sell Midland. Go direct and get paid street.
- 477
Why would someone sell or buy an annuity with a 14 year surrender charge especially when the insurance company can (and are) constantly lower the caps? 
- 17,069
Why would someone sell or buy an annuity with a 14 year surrender charge especially when the insurance company can (and are) constantly lower the caps?
Maybe for the income guarantees?
Are the caps lowering on new biz only or existing biz?
- 10,829
I havent had any real significant Cap decreases on inforce business (knock on wood). But most have decreased to some extent.
One advantage of a longer surrender product is that you shouldnt see as large of a Cap decrease on them. But I agree that it makes very little sense to sell a 14 year product right now. If someone was using an Income Rider and planned to take income in the next 2 years, then maybe go with a 14 year if it has higher caps. That is about the only scenario I could see it being an ok fit in the current economic environment.
- 477
Why can't indexed annuites be sold with shorter surrender charges (say 5 years) lower the commissions and guarantee the caps for the full 5 years. At the end of the term you can either renew or cash out. I am not trying to be critical, it just seems it would be fairer to the client.
The comp on the 5 and 6 year products is already really low and they still don't guarantee the caps....
- 2,045
