Can Anyone Help Me/thoughts on American Equity Investment Life In

[DawnPatrol]

Hi; I'm a State Farm Agent in CA and P&C is pretty much my game. I have a client that was proposed a Fixed Indexed Annuity. He is 68 years old and initial premium is $65K
There is a 9% or 10% bonus on premium . Has 2 years deferral (waiting time before you can take money out without penalty?)
I think it uses the S&P, Dow or 10 year treasury index.
Whats the skinny on this company? Any of you Annuity pros know if this product is any good?
One thing I don't see on the illustration is the surrender schedule (which raises an eyebrow)
Can any of you guys help with comments. Internet searches (which I know you have to take with a grain of salt) show a Federal class action lawsuit and lawsuits by the attorney generals of MN & CA
Care to comment?
Alan From San Diego

 

[Norwayguy]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

Hi; I'm a State Farm Agent in CA and P&C is pretty much my game. I have a client that was proposed a Fixed Indexed Annuity. He is 68 years old and initial premium is $65K
There is a 9% or 10% bonus on premium . Has 2 years deferral (waiting time before you can take money out without penalty?)
I think it uses the S&P, Dow or 10 year treasury index.
Whats the skinny on this company? Any of you Annuity pros know if this product is any good?
One thing I don't see on the illustration is the surrender schedule (which raises an eyebrow)
Can any of you guys help with comments. Internet searches (which I know you have to take with a grain of salt) show a Federal class action lawsuit and lawsuits by the attorney generals of MN & CA
Care to comment?
Alan From San Diego

How bout an actual product name if you have the illustration...There would definatly be surrender charges.

 

[Franz Kafka]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

Why does a 68 yr old guy want to buy a long term index annuity with $65K? If you have the answer to that question you can easily annihilate the competition.

 

[pmgannuities]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

Hi; I'm a State Farm Agent in CA and P&C is pretty much my game. I have a client that was proposed a Fixed Indexed Annuity. He is 68 years old and initial premium is $65K
There is a 9% or 10% bonus on premium . Has 2 years deferral (waiting time before you can take money out without penalty?)
I think it uses the S&P, Dow or 10 year treasury index.
Whats the skinny on this company? Any of you Annuity pros know if this product is any good?
One thing I don't see on the illustration is the surrender schedule (which raises an eyebrow)
Can any of you guys help with comments. Internet searches (which I know you have to take with a grain of salt) show a Federal class action lawsuit and lawsuits by the attorney generals of MN & CA
Care to comment?
Alan From San Diego

Afternoon, please email me your contact info at [email protected] and I would be happy to go over the product with AEI.

 

[Charpress]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

Hi; I'm a State Farm Agent in CA and P&C is pretty much my game. I have a client that was proposed a Fixed Indexed Annuity. He is 68 years old and initial premium is $65K
There is a 9% or 10% bonus on premium . Has 2 years deferral (waiting time before you can take money out without penalty?)
I think it uses the S&P, Dow or 10 year treasury index.
Whats the skinny on this company? Any of you Annuity pros know if this product is any good?
One thing I don't see on the illustration is the surrender schedule (which raises an eyebrow)
Can any of you guys help with comments. Internet searches (which I know you have to take with a grain of salt) show a Federal class action lawsuit and lawsuits by the attorney generals of MN & CA
Care to comment?
Alan From San Diego

1) American Equity is a good company.
2) It doesn't really matter how he is indexed, he can change it each year.
3) Income riders generally aren't geared for turning on income in as short a period as 2 years. Sometimes it can illustrate well, but not often.
4) Penalty periods for FIAs are fairly consistent across the industry. If he is in this for lifetime income, the penalties should be somewhat irrelevant assuming he as plenty of other assets.
5) Bonus, caps, spread, all of that stuff is fairly irrelevant. What is relevant is how much income he is going to get on a guaranteed basis (not woulda, coulda, shoulda) starting in whatever year he wants to start income.
6) Good company with good products, but nobody is going to be able to say much without knowing the client's situation.

 

[ScottLFB]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

Alan, what are you looking for exactly? Since you're a State Farm Agent I assume you're captive and can only offer State Farm Life or Annuities is that correct? Are you looking for the pros or the cons against American Equity? Sounds like you are digging for information to discredit what the other agent brought to the table with the Fixed Index Annuity. To be honest, if the client is trying to solve for lifetime income without sacrificing the flexibility of his cash account then you're between a rock and a hard place because the American Equity product will outperform your State Farm Fixed Annuity with annuitization as your only option.

What are the rules with your captive contract? Maybe it would be a good option to team up with an Independent in your area that can offer a FIA that will beat the American Equity payouts so you are doing what your client wants and still getting a portion of the commission at least. Just my 2cents

 

[Mark]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

I was with them for 2 years. They are a good company.

 

[DawnPatrol]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

Just trying to see if this company has a good rep... yes, I am definitely captive. Yes Scott FLB I do understand that their product will outperform my fixed annuity (thats where the $65 K is right now in a fixed 3% guarantee product with me). This is a friend of mine and its no biggie to me if he moves it.
Its called a BONUS GOLD (index-1-07) IAV accumulation 8% and it has a 10% premium bonus
They also have a "retirement gold" with a 9% bonus
My question is :
does my client have any chance of losing principal?
Thanks again to all

 

[VolAgent]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

My question is :
does my client have any chance of losing principal?
Thanks again to all

Sounds like you need to brush up on exactly what a "Fixed Indexed Annuity" is. That'll quickly answer your question.

I love this forum, but if this guy is looking to you for advice, you shouldn't be on here looking for it to give to him.

 

[luke4275]

Re: Can Anyone Help Me/thoughts on American Equity Investment Lif

can someone please teach me the equity market? rick? please? I;m desperate to learn and earn