Equity Indexed Annuities
- Thread starter 1manshow
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- annuity indexed annuities
Ichiban
Expert
- 62
Also I would add
Great American
Legacy Marketing Group
OM Finincial (Old Mutual)
American General
- 313
Anyone a fan of some of the new Equitrust products or National Western?
NWL is making a strong comeback. Equitrust's rating drop to B really hurt them, but their products are strong. The MVA's really killed them last year.
A lot of IMOs advertise NWL with a 15% bonus and 12% comp. They're combining products and the bonus is really 10%, they're including the 5% IAV bonus.
Hope this helps.
A lot of IMOs advertise NWL with a 15% bonus and 12% comp. They're combining products and the bonus is really 10%, they're including the 5% IAV bonus.
Hope this helps.
While studying the SEC 151a rule, I came across these stats:
Percent of business is annuities -
Allianz 66%
American Equity Investors 97%
Americo 90%
Aviva 85%
and the following companies have the majority of their business in annuities:
IIC, LSW, and Midland National.
As for me, I would think twice about contracting with a company so heavily dependent upon one product. A life carrier I recently interviewed is pushing life insurance and discouraging annuities because they lost their AM Best rating due to high annuity claims during the recent recession.
Those people that bought annuities back in the day (a decade ago) the carriers guaranteed 8% are in tall cotton now. Just try to find higher than 3% these days!
Every product has a life cycle, whether its widgets or annuities.
Percent of business is annuities -
Allianz 66%
American Equity Investors 97%
Americo 90%
Aviva 85%
and the following companies have the majority of their business in annuities:
IIC, LSW, and Midland National.
As for me, I would think twice about contracting with a company so heavily dependent upon one product. A life carrier I recently interviewed is pushing life insurance and discouraging annuities because they lost their AM Best rating due to high annuity claims during the recent recession.
Those people that bought annuities back in the day (a decade ago) the carriers guaranteed 8% are in tall cotton now. Just try to find higher than 3% these days!
Every product has a life cycle, whether its widgets or annuities.
- 172
What is there to be said for specialization? I find it quite refreshing to find a company that does something well and sticks to it. They don't have their hands in so many pots. It is nice to offer a client a product from a company that knows what they are doing. Not to say the companies that have several lines of products can't provide quality annuities, because they can because they are a well rated company and do everything well. Would you agree or no?
- 2,455
I can only speak for LSW on this. Their life products are some of the best and their annuities are extremely stable. Their commissions suck, at least mine do.
- 10,711
There is something to be said for specialization, but there is also something to be said for diversification.
Also, many companies who have an overwhelmingly one sided business model tend to buy business.
They do this with inflated rates up front and they drop them on the back end.
Allianz for a good while was pushing products with huge bonuses and even larger commissions. But the bonuses where only retained if the client annuitiezed the contract... piss poor imo...
Im not saying that every company needs to be an MoO with every product known to man. But having more than just one thing they do well is going to make them a more stable company financially.
What happens when the SEC makes EIAs a securitized product and those carriers previously mentioned see a huge drop in sales??
The drop in revenue would certainly put pressure on their claims paying ability...
Think about it this way... those companies got so much business because they had the best rates out there (best rates does not mean the best contract).
Why where their rates higher than other more financially stable companies??
Because they where desperate for the revenue! Thats why.
Its called buying business, and its not always a good thing for the client.
Their rates where so much higher because they knew that it would bring in immediate revenues and that on down the line they could drop the rates and that many of the bonuses they gave would be retained...
And as far as reputable companies go (imo). There is only one on that list previously mentioned that I have ever sold an annuity for, and thats Aviva.
I wouldnt touch Allianz with a 10 foot pole!! They are a snake among snakes... at least in my opinion...
That is one of the funniest thing I have ever read on this forum you obviously havent been in this business to long.
They are without a doubt one of the Shadier companies on that list, and that is a FACT.
