Dateline Expose on an Annuity Sellers

Forget about the stupid hidden camera and forget about Chris "The Adulteror" Hansen. That's irrelevant.

Learn to explain and sell annuities ethically. You don't need a bunch of gimmicks (like that stupid magazine with the agent's name and picture on the cover). And you shouldn't under-emphasize surrender charges and how they work.

If you are selling right, then your presentation could be taped and shown in front of a jury and the case be thrown out.
 
Forget about the stupid hidden camera and forget about Chris "The Adulteror" Hansen. That's irrelevant.

Learn to explain and sell annuities ethically. You don't need a bunch of gimmicks (like that stupid magazine with the agent's name and picture on the cover). And you shouldn't under-emphasize surrender charges and how they work.

If you are selling right, then your presentation could be taped and shown in front of a jury and the case be thrown out.

So very true. The next video is a clip with the Attorney General of Minnesota and Hansen asks given the downsides why have they (the FIAs) been so successful? Her answer is that agents have been trained to sell them in a slick manner. So lets totally forget that they can solve a very real problem and allow for a client to recieve possibly more in interest than the CD or current fixed annuity.

I always get a kick out of these types of videos as they always pull the cover back before getting to the application. I am sure they don't want to show the agent completing an application, suitability form, client disclosure or understanding form specific to the product or have the customer initial right beside those so called hidden surrender charges.

Does it happen that a client puts money into an annuity (any annuity) and then shortly (before the surrender charge period is over) want to pull funds out, absolutely, I am dealing with a client right now who is in his early 50's and every year when he gets his annual statement he calls and wants to pull money out to buy a new toy, this year was for an ATV I think...Before returning the call I always review the suitability form to see what other assets they had when we took the policy out, where the money came from and in this case the customer had funds in the bank, so I ask him about it, the funds are still there he just has a hole in his pocket and everytime he gets a statements he can't stop himself from blowing some of the money even on being reminds in descriptive detail about the surrender charges, state and federal income taxes and the 10% penalty tax.
 
So very true. The next video is a clip with the Attorney General of Minnesota and Hansen asks given the downsides why have they (the FIAs) been so successful? Her answer is that agents have been trained to sell them in a slick manner. So lets totally forget that they can solve a very real problem and allow for a client to recieve possibly more in interest than the CD or current fixed annuity.

I always get a kick out of these types of videos as they always pull the cover back before getting to the application. I am sure they don't want to show the agent completing an application, suitability form, client disclosure or understanding form specific to the product or have the customer initial right beside those so called hidden surrender charges.

Does it happen that a client puts money into an annuity (any annuity) and then shortly (before the surrender charge period is over) want to pull funds out, absolutely, I am dealing with a client right now who is in his early 50's and every year when he gets his annual statement he calls and wants to pull money out to buy a new toy, this year was for an ATV I think...Before returning the call I always review the suitability form to see what other assets they had when we took the policy out, where the money came from and in this case the customer had funds in the bank, so I ask him about it, the funds are still there he just has a hole in his pocket and everytime he gets a statements he can't stop himself from blowing some of the money even on being reminds in descriptive detail about the surrender charges, state and federal income taxes and the 10% penalty tax.

It is simple, no one would watch a segment on how annuities are properly sold and all due disclosure was given. No politician is going to stand up and defend insurance agents when he can demonize them instead for votes.
 
It is simple, no one would watch a segment on how annuities are properly sold and all due disclosure was given. No politician is going to stand up and defend insurance agents when he can demonize them instead for votes.

Very true.

1.
The major financial media focuses almost solely on creating drama. Not educating the public.

Everyone thinks that there is one right product for every situation. Or there is one right plan for every situation.

And the Financial media does nothing to dispel this very blatant falsehood. But the sad truth is that a drama filled article gets more views than a truthful non-biased article.


2.
Our Insurance Commissioners are nothing but politicians. They seem to be very interested in grabbing headlines in the same manner the news is "your getting ripped off and I am here to save the day".

The level of actual insurance knowledge among those in the state insurance departments is strikingly scary.

In SC, we have insurance complaint investigators who have never even sold insurance!!!! :1eek:
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Learn to explain and sell annuities ethically. You don't need a bunch of gimmicks

Great statement. If the product is right for the situation then the truth is all you need.
 
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I wonder why they never mention how much seniors pay in fees for mutual funds or other securities.

Or how much seniors have lost in the market when they were told it was "safe".

They only talked about comparing annuities to the bank.

I guess annuities and insurance agents are easier targets for sensational TV and furthering a political agenda.
 
Say what you want, but one word stops me from ever selling annuities again:

STIGMA

You assume everyone believes what they read or watch.

If you go out and actively prospect for annuities you will find maybe 5 or 10 out of 100 who have a sigma towards annuities.

But you will find that ratio when you prospect for life insurance. Its the same type of person who says "why do I need life insurance? i will be dead.". Or the type that says "Suze Orman says I only need life insurance until age 60".

People care what something does. Not its name. If you educate about what it does people respond well.

People are putting over $10 Billion a year into annuities. And that number has been growing year over year. So obviously there are plenty out there with no stigma.
 
I'm not disagreeing with you.....I'm just stating why I decided to discontinue marketing/selling them.
I've sold a few to folks I know well who inquired and wanted them.

I don't think life insurance has a stigma attached at all. The Orman's and Ramsey's of the world have never questioned the validity of life insurance. They are just against certain types of life insurance.
 
I also take issue with the math. They stated the product had a 16% first year surrender charge so they subtracted 16% from 100k in the example. I haven't sold Allianz in a long time but could there have been a bonus included due to the higher surrender charge? If there is a bonus is it forfiet due to surrender or is it included in AV that the surrender charge is calculated on I mean if your going to call the agent out on not being totally upfront then doesn't the media in the article have the same duty to be totally upfront.
 
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