Best FIA's for Cash Growth

[Indy007]

I'm contracted for many annuity carriers and keep up on their caps, participation rates, spreads/etc. I'd just like to hear what others are writing for FIA's based solely on cash accumulation.

I have my picks for carriers on income riders, death benefit riders and so on. As we all know, there are fees to have them and some folks are just looking for cash growth/safety and not all the riders. Who has consistently had some of the highest caps/rates/etc? I've been in insurance for 7 years now, independent for 2 and have mainly been writing Allianz, North American, American Equity and Athene. Just curious what other options may be better. Look forward to the input from agents and not just IMO's pushing certain carriers.

 

[Larry Tew]

I use Jackson National. For me it's less about bells and whistles and more about the company strength and service.

 

[scagnt83]

I like Great American right now.

They currently offer 5.5%/5.25% Annual P2P on a 6 year product.
It has Bailout Caps at 5%/4.75% on the Ap2p too.

Those rates reduce .25bps at the end of the month.

They are A+ rated.



If a long surrender period is not a problem Midland has high caps on their 14 year product. I forget the name, but it has around a 10% Yp2p Cap right now. 3% Mp2p. 5% Free withdrawals.

A+ Rated.

 

[Larry Tew]

I like Great American right now.

They currently offer 5.5%/5.25% Annual P2P on a 6 year product.
It has Bailout Caps at 5%/4.75% on the Ap2p too.

Those rates reduce .25bps at the end of the month.

They are A+ rated.

I show Great American as "A" with Best (3rd highest) and "A+" with S&P (5th highest). Great American Insurance Group - Financial-Strength - Property and Casualty | Annuities

 

[RonRoberts]

I like Great American right now.

They currently offer 5.5%/5.25% Annual P2P on a 6 year product.
It has Bailout Caps at 5%/4.75% on the Ap2p too.

Those rates reduce .25bps at the end of the month.

They are A+ rated.



If a long surrender period is not a problem Midland has high caps on their 14 year product. I forget the name, but it has around a 10% Yp2p Cap right now. 3% Mp2p. 5% Free withdrawals.

A+ Rated.

That may be their "Capstone" product. Out of town for the weekend so can't verify. The group I work with has placed a many in the Capstone over the last several years. I've sold a few but am extremely selective on the 14 year surrender periods.

 

[scagnt83]

I show Great American as "A" with Best (3rd highest) and "A+" with S&P (5th highest). Great American Insurance Group - Financial-Strength - Property and Casualty | Annuities

I apologize for not specifying which ratings company lists them as A+...


But imo it is one of the most competitive products on the market.
It offers the two most basic and consistent crediting methods.
High Caps.
And if the Caps go below 5% you can Bailout of the contract free of surrender charges if you wish.

So you have 1% higher caps & 1 year shorter term to make up for the slightly lower Rating.

On a 6 year product that is very strong. Im not saying JN has a bad product. But in comparison, the products are very similar.
One has an advantage on Caps/Term. The other on Financial Ratings.
All of the other features are basically the same.

But you cant say that GA is unsafe with an A/A+ rating; especially on a 6 year product.

 

[Larry Tew]

I apologize for not specifying which ratings company lists them as A+...


But imo it is one of the most competitive products on the market.
It offers the two most basic and consistent crediting methods.
High Caps.
And if the Caps go below 5% you can Bailout of the contract free of surrender charges if you wish.

So you have 1% higher caps & 1 year shorter term to make up for the slightly lower Rating.

On a 6 year product that is very strong. Im not saying JN has a bad product. But in comparison, the products are very similar.
One has an advantage on Caps/Term. The other on Financial Ratings.
All of the other features are basically the same.

But you cant say that GA is unsafe with an A/A+ rating; especially on a 6 year product.

I'm with you. I prefer A+, and I agree that it may be worth the compromise on a shorter plan. JN's Elite Choice is a strong product. I'd like the caps to be a pinch higher, but all around, it's solid. No bells or whistles though. And the guarantees recently dropped from 2% to 1%.

I could live with an "A" if there was something in the trade, but I scratch my head when I see agents freely recommending "B" rated companies (F&G for example) when there are so many higher-rated companies.

Am I the only one who sees it as a paradox that the companies that promise the most are also the lowest rated?

Does Great American appoint direct or do you have to go through an agency or IMO?

 

[scagnt83]

I'm with you. I prefer A+, and I agree that it may be worth the compromise on a shorter plan. JN's Elite Choice is a strong product. I'd like the caps to be a pinch higher, but all around, it's solid. No bells or whistles though. And the guarantees recently dropped from 2% to 1%.

Jackson's 7 Year (AscenderPlus Select 7) is strong over $100k (4% Yp2p Cap)

What is the Elite Choice?

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I could live with an "A" if there was something in the trade,

In the current economic climate I see more value in a shorter surrender & bailout provision, than I do a slightly higher financial rating. jmo

But Jackson is a solid company, no doubt about it. Pretty much everything they do they do well.

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Ibut I scratch my head when I see agents freely recommending "B" rated companies (F&G for example) when there are so many higher-rated companies.

Am I the only one who sees it as a paradox that the companies that promise the most are also the lowest rated?

Idk. For short surrender MYGAs B++ companies recently have been pretty much the only game in town over the past few years.

Yes there is slightly more risk, and the customer should be shown A rated alternatives. But it gives more reward too.

F&G offers 3.5% on a 5 year MYGA.
The closest A rated option is 2.75% (AE (A-))
Then Midland (A+) at 2.5%

So you get a full 1% more gains if you risk a slightly lower rated option.

What is the % chance that a B++ company will go into receivership in the next 6 years? Less than 1%? Less than 0.5%? Less than 0.25%?

Whatever % you consider it to be; is 1% more worth that chance?

Depends on the client...


Excluding F&G; A- Rated & 2.75% for 5 years is a good option when compared to others.

On 4 year products Midland offers 2% on their $200k+ band. 1.65% low.
You can get B++ options at 2.25% for low bands.

There are no 3 year A rated options Im aware of on the primary market.

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Does Great American appoint direct or do you have to go through an agency or IMO?

I think it is only through an upline.

Midland offers some very strong options.
If surrender period isnt an issue you can get 10% annual caps on a 14y.

Then they have 2 4year IAs with 3%ish annual caps. One has 7% bi-annual.

Midland is a sister company of NA. Midland usually offers slightly higher rates. Plus they contract direct.

 

[Larry Tew]

... What is the Elite Choice?

It has an 8 or 10yr term. You can allocate into 3 methods - annual reset monthly average (10yr cap 5%), 2yr P2P (2yr cap 9.25%), and 2yr reset monthly sum (monthly cap 2.45%, no floor).

Those caps are for 100k+, 10 year option.

 

[Tahoe Ray]

I'm with you. I prefer A+, and I agree that it may be worth the compromise on a shorter plan. JN's Elite Choice is a strong product. I'd like the caps to be a pinch higher, but all around, it's solid. No bells or whistles though. And the guarantees recently dropped from 2% to 1%.

I could live with an "A" if there was something in the trade, but I scratch my head when I see agents freely recommending "B" rated companies (F&G for example) when there are so many higher-rated companies.

Am I the only one who sees it as a paradox that the companies that promise the most are also the lowest rated?

Does Great American appoint direct or do you have to go through an agency or IMO?

Not really a paradox but essentially how all fixed investments work, right? They HAVE to offer a higher yield to entice buyers due to credit risk.

Like treasuries yield less than munis (AAA) which yield less than investment grade corporates etc.