Best Annuity to Get Appointed with

[Nate insurance]

looking forward, the only thing that can be shown is guarantees. The rider accumulates at a guaranteed rate. The cash growth is dependent upon an index, so only past history can be shown. This is always the case

So couldn't he show an hypothetical illustration on the cash growth for the next 10 years?

 

[scagnt83]

So couldn't he show an hypothetical illustration on the cash growth for the next 10 years?

It depends on the company. Some let you put in an assumed rate for an illustration, but many only show historical examples.

But some mix of the historical examples is most likely what the client should expect as the future growth. So the historical examples are basically your growth projections.

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Ok need your help. I have a client that has some cds that just expired where his ROI was .25%. So I just recently signed up with a FMO and he came up with 2 products that had strong cap rates (Athene Target Horizon 10) as the client is concerned about his ROI. So I asked him if he could illustrate what the product would look like in 10 years and he responded with, We wouldn’t be able to show growth projections. The illustration systems are designed to show future growth/income figures when we added income riders.

So I am a new agent and was a little confused with what he said. Why couldn't he run an illustration without the income riders?

It might be that the product is only issued with a Rider.

If he is showing you products with a Rider, and you want the highest ROI, you have a disconnect somewhere.

That product is at 4.5% caps I believe. So there are higher Caps available. Both from Athene and from other companies.

Midland has 6% Caps on 10 year products. (they contract direct)
Allianz has 5.25% Caps. Great American has 5.25% Caps.
NWL has very high Participation Rates (95% monthly average).

Lots of options that are over a 4.25% Cap. And almost all of them are from much higher rated companies. Athene is a 44 Comdex. Midland is 93...

 

[jmhalvo]

So couldn't he show an hypothetical illustration on the cash growth for the next 10 years?

sure but how is that any different than the past results? In both cases, you don't really know what will happen.

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So couldn't he show an hypothetical illustration on the cash growth for the next 10 years?

it almost seems like you have a need to know what will happen. But you can't know that, except as far as the GMWB

 

[Nate insurance]

sure but how is that any different than the past results? In both cases, you don't really know what will happen.

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it almost seems like you have a need to know what will happen. But you can't know that, except as far as the GMWB

As a selling point. To show him what it could be potentially be.

 

[Norwayguy]

As a selling point. To show him what it could be potentially be.

Does he want guarantees or potential. If you want to show him the highest value guaranteed you may want to look at a MYGA with the FIA it is about potential and the way I sell them is explain how they work the customer either gets or they don't.

 

[Nate insurance]

Does he want guarantees or potential. If you want to show him the highest value guaranteed you may want to look at a MYGA with the FIA it is about potential and the way I sell them is explain how they work the customer either gets or they don't.

He doesn't want to touch the money but to grow his account value. So I was thinking if he was to put anywhere between $60,000 and $100,000 into a fixed indexed the FMO could run some illustrations to show what his growth could potentially be like in 10 years (based on the past performance of the index). But I guess the FMO was saying you have to add an income rider to show that illustration.

 

[scagnt83]

He doesn't want to touch the money but to grow his account value. So I was thinking if he was to put anywhere between $60,000 and $100,000 into a fixed indexed the FMO could run some illustrations to show what his growth could potentially be like in 10 years (based on the past performance of the index). But I guess the FMO was saying you have to add an income rider to show that illustration.

Show him NWL Global Lookback (75% PR) or Ultra Value (95% PR). Or Midland Select 10 (6% yearly P2P Cap).

Those are probably the best performers on the market at the moment.

 

[jmhalvo]

He doesn't want to touch the money but to grow his account value. So I was thinking if he was to put anywhere between $60,000 and $100,000 into a fixed indexed the FMO could run some illustrations to show what his growth could potentially be like in 10 years (based on the past performance of the index). But I guess the FMO was saying you have to add an income rider to show that illustration.

there you just said it : any hypo looking forward is, as you say, "based on the past". Potential? That's the caps. You cannot get around the fact that there is risk - the growth could be low! It's a fixed annuity - no stock market investment.

 

[KRobby]

That's right, the $10,000 CD that Krobby stumbled across in the trailer park is locked up in a 12 year surrender product, they ain't going anywhere.

lol @ $10k cd, no wonder brokers don't venture into the silly insurance forums.

-King

 

[Stephen]

lol @ $10k cd, no wonder brokers don't venture into the silly insurance forums. -King

Ok now I am confused, are you an expert at mailing lower middle income and one call closing annuities, or a High powered Wall Street trader that is above insurance?

I am securities licensed, but still find plenty of good information here. Maybe you are just too smart for all of us.