Aviva Fixed Index

[smokin goose]

The way I understand, this product resets every two years. My question is are the previous earnings vulnerable after a reset if the market tanks or do the earnings become part of the principal after each reset?

Hope this question makes sense. I'm in the process of learning annuities.

 

[senior-advisor-indiana]

The way I understand, this product resets every two years. My question is are the previous earnings vulnerable after a reset if the market tanks or do the earnings become part of the principal after each reset?

Hope this question makes sense. I'm in the process of learning annuities.

No, previous earnings are not vulnerable. They are locked in. Interest is then earned on the new balance.

 

[smokin goose]

No, previous earnings are not vulnerable. They are locked in. Interest is then earned on the new balance.

Thank you, sir! .........

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Does the initial bonus immediately become part of the protected principal as well?

 

[senior-advisor-indiana]

Thank you, sir! .........

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Does the initial bonus immediately become part of the protected principal as well?

Any money in the account is protected from losses. That's the point of a FIA. Te account value doesn't go down if the market goes down.

 

[smokin goose]

Got it ..................

 

[senior-advisor-indiana]

Got it ..................

Good. Now go talk people into moving their money out of the market into them.

 

[smokin goose]

Good. Now go talk people into moving their money out of the market into them.

Will do .................

 

[scagnt83]

Good. Now go talk people into moving their money out of the market into them.

Will do .................

You mean "show people who are in the market your product and offer it as an option they can choose if they deem it a suitable alternative"... unless goose has a 6 or 65 (or equivalent professional designation)

Goose,
Aviva does not have very great FIAs right now. Plus they have gone through a lot from a corporate level. I would look at other companies/products if you plan to market FIAs. Great American, American Equity, Midland, LFG all have good products and are sound companies.

 

[smokin goose]

You mean "show people who are in the market your product and offer it as an option they can choose if they deem it a suitable alternative"... unless goose has a 6 or 65 (or equivalent professional designation)

Goose,
Aviva does not have very great FIAs right now. Plus they have gone through a lot from a corporate level. I would look at other companies/products if you plan to market FIAs. Great American, American Equity, Midland, LFG all have good products and are sound companies.

SAI was just joking around.

Didn't know Aviva was having issues. Is it not safe to place funds with them? If a company goes under, is the money in your annuity still protected.

 

[scagnt83]

SAI was just joking around.
.

when is he not??

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Didn't know Aviva was having issues. Is it not safe to place funds with them? If a company goes under, is the money in your annuity still protected.

I didnt say it wasnt safe.

The biggest issue imo is that they are not competitive products anymore. Much better options for indexed caps and for income riders. I cant think of a reason to use them at the moment...

But Aviva USA was literally just acquired this month by Athene after 9 months of haggling.
Im just not a fan of placing business with carriers that are going through major corporate/structural changes. Too many variables, and too many other options without those variables.

Also, Avivas financial ratings have been declining if Im not mistaken. They are currently an A-.

Yes Annuity funds are SGA protected up to the state limits. But this is not something that makes it ok to sell struggling companies.

If the SGA gets involved things are FUBAR. And your clients will be extremely unhappy.

Imo, if you recommended a company that had doubt surrounding it. And there were equal products from stronger companies. You will have done that client a huge disservice. Imo it is unethical. Although legally it is ok assuming product suitability was met.

Im not accusing you Goose of doing anything unethical. I realize you are trying to learn the market.
But Aviva is one of those companies that tends to have lots of sweetheart deals with IMOs to push their products in return for higher comp. So you often see agents who dont know much about the competition, fall into the IMO trap of "go sell this really great product"... when in fact there are much better options... they just dont make as much for the IMO or for the agent... so always keep that in mind. (Allianz is known for this too)

The SGA just doesnt wave a magic wand and make it better. There is a set process that they go through, and it takes a while. Your clients can still access funds to an extent during the process. But its not a fun process for a client to have to go through.