I've sold one. It was a good fit for the situation. Definitely not for everyone. Client wants to withdraw money. No more than 5% per year and liked the idea of the beneficiary getting no less than the initial deposit even after taking the 5% withdrawals.
I'm not convinced it will perform as well as the brochure shows (taking into consideration the hypotheticals of how it would have performed over the last 30 years). But if you have someone who is content with 5% withdrawals and the ability to get a 5% credit toward the death benefit, not a bad product.
They have been touting this as the new great thing for over two years now. I don't sell it because it isn't right for the particular market I generally work with.
Aviva/Amerus/American Investors is a good company. Their customer and agent service folks are easy to work with and they do a good job of getting transfers done and business issued. If the income annuities, BPA's, are right for your customer, they are a good choice.
Several companies have these guaranteed income annuities, and for folks who want to use an annuity like, well, an annuity, these may be a great option, but the people I sell to are generally not looking for an income from the annuity and prefer the bonus and fixed interest or index options of a more traditional FIA. To my customers the option of a 10 pct annual withdrawal is all they want and they generally do not exercise that option either. It is all about protecting and preserving their money from the FA's of the world who put and keep old people in Mutual Fund's
Aviva/Amerus/American Investors is a good company. Their customer and agent service folks are easy to work with and they do a good job of getting transfers done and business issued. If the income annuities, BPA's, are right for your customer, they are a good choice.
Several companies have these guaranteed income annuities, and for folks who want to use an annuity like, well, an annuity, these may be a great option, but the people I sell to are generally not looking for an income from the annuity and prefer the bonus and fixed interest or index options of a more traditional FIA. To my customers the option of a 10 pct annual withdrawal is all they want and they generally do not exercise that option either. It is all about protecting and preserving their money from the FA's of the world who put and keep old people in Mutual Fund's
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Gerbermeister
New Member
- 5
I've been with American Investors / Amerus / AVIVA for 5 years...I have not used that product but they are a GREAT company...They used to take us on some SWEET trips.
Gerbermeister
New Member
- 5
Hey Patch,
I'm with Magellan...They take me on some nice trips too...
Gerb
I'm with Magellan...They take me on some nice trips too...
Gerb
Cwilcoxson
New Member
- 3
Sorry. Yes I sell FIA's, just not that one or Aviva's. I did confuse BPA with the Guarantee Income Annuities. They are good products, but too complicated for my average client. To me annuities should be much simpler and straight forward. The client pays extra for the Guarantees and complicating the allocation strategies is not a good idea. They are hard enough to explain as they were.
For instance, the BPA;
Client Friendly Features
- Lock-in Values at Any Time1
- 5pct Minimum Guarantee Rider2
- 100pct Principal Protection3
- 10pct Free Withdrawals4—1st Year!
- Checkbook Access
- Full Value on Death
- No Charge Back on Death
- Values Tracked Daily
- Contracts Issued Daily
2 If elected, the Family Endowment Rider™ provides a guaranteed death benefit floor upon the death of the annuitant equal to the premium accumulated at an interest rate of up to 5 percent compounded through age 90. 3 Less early withdrawal charges. 4 Any amount withdrawn in excess of the free withdrawal amount is subject to a Withdrawal Charge and a Market Value Adjustment (MVA), and if taken prior to a Lock-in Date, will not realize any interest for the current Term. Withdrawals may be taxable and if taken prior to age 59½, may also be subject to a 10pct federal tax penalty. 5 Commission up to ten percent for twelve-year contract to age 75 with Enhanced Death Benefit Rider included.
Explain all of that and more to your 72 year old father
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