Dateline Expose on an Annuity Sellers

Jul 26, 2013

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  1. Allen Trent
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    Fixed annuities can lose value to surrender charges unless it has 100% guarantee of return of premiums in the surrender charge language. IE: some fixed annuities may only return 85 -92 cents on the dollar if surrendered quickly.

    not likely, but it happens. So your statement should be "cant lose value due to investment/interest returns"
     
  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Unless interest rates change and one chooses to liquidate them before maturity. Statements may show a loss of value on the statement, but otherwise you're right.
     
    DHK, May 1, 2019
    #22
  3. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    Same effect as an early surrender charge. If a Bond is held to maturity, there is no possibility of loss. Same/similar to a Fixed Annuity.
     
    Last edited: May 1, 2019
  4. Oregon Ben
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    Yes, not surrendering the policy. Although some include living benefits unlike bonds
     
    Last edited: May 3, 2019
  5. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    In all fairness. Back when this dateline episode aired. Annuity apps were not as comprehensive as they are now.

    Fewer pages, fewer explanations, fewer disclosures, no initials, and fewer signatures. The suitability section was non-existent compared to today's apps. Very different.

    Stuff like that scandal is why apps are the way they are these days.
     
  6. fostever
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    I think where agents get in trouble, whether it's annuities or anything else is greed. Trying to recommend converting most or all of a clients retirement portfolio to an annuity instead of a portion is usually why annuities are a byword for predatory sales.
     
  7. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    I completely agree. Part of my whole annuity elevator speech is it "can be great for a portion of your retirement portfolio, but not all of it".

    So it immediately takes away the thought or objection of "they want all of my money"
     
  8. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    OR... you are doing a laddered annuity or split annuity approach.

    Yes, it's dangerous and/or reckless to put all of one's retirement portfolio into a SINGLE annuity product. But laddering, layering, or splitting assets between various annuity contracts can be a great way to go.
     
    DHK, May 8, 2019
    #28
  9. scagnt83
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    That would not pass suitability with many carriers.
     
  10. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    If you have an emergency liquidity fund, and you've got a SPIA (or other annuity for income) and you can split up the remaining funds for growth/deferral... there would be no problem. David_H_Kinder_ChFC__May_8th_2019_1040532.jpg David_H_Kinder_ChFC__May_8th_2019_1040533.jpg David_H_Kinder_ChFC__May_8th_2019_1040534.jpg
     
    DHK, May 8, 2019
    #30
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