F&G - Chargeback at Death Starting Feb. 14

[EAJoe]

Just got an email from F&G - "We will begin charging back commission upon death in the first two years of our contracts. 100% in the first policy year; 50% in the second policy year."

Can't say I'm surprised to see this happen, but I'm definitely not too happy about this.

Any other carriers out there that don't charge back on death for annuities?

 

[dabulls]

Just got an email from F&G - "We will begin charging back commission upon death in the first two years of our contracts. 100% in the first policy year; 50% in the second policy year."

Can't say I'm surprised to see this happen, but I'm definitely not too happy about this.

Any other carriers out there that don't charge back on death for annuities?

Just write a 2 year term on your client, with you as the benny. That's insurable interest,right?

 

[EAJoe]

Just write a 2 year term on your client, with you as the benny. That's insurable interest,right?

I like your thinking!

 

[Charpress]

Traditionally, no annuity had a chargeback for death.

Why would they unless there was a sweet death benefit rider? I've got some stuff out there with 4% guaranteed death benefit riders, but there are no chargeback provisions.

I need to go back and check my emails from F&G and open that letter I got a week or two ago from them. I usually throw all that stuff in a pile.

I can say that if this is the trend, my trend will be to never sell a product that keeps me on the line for two years. Two months maybe... just sayin'

 

[SanDiego619]

Traditionally, no annuity had a chargeback for death.

Why would they unless there was a sweet death benefit rider? I've got some stuff out there with 4% guaranteed death benefit riders, but there are no chargeback provisions.

I need to go back and check my emails from F&G and open that letter I got a week or two ago from them. I usually throw all that stuff in a pile.

I can say that if this is the trend, my trend will be to never sell a product that keeps me on the line for two years. Two months maybe... just sayin'

ehhhh. You may wanna check up on that. If you're talking about AEI and their DB then there is definitely a chargeback upon death in the 1st year.

I suppose you could also be talking about TVA and I would say I could not speak to SBL's policy. However, I would definitely say most carriers have a 1st year chargeback policy.

Oh and FnG announced that it will now be 1 year not 2 anymore. They were quick to change that

 

[Klutch]

Does F&G have any good products? The only one I've seen is a 14 year annuity with a 6.5% cap.

 

[Charpress]

ehhhh. You may wanna check up on that.

I checked around and found a grid that compares chargebacks for deaths on annuity products for most of the big companies.

I was a bit surprised that chargebacks for deaths are common -mostly within six months. The grid was a couple of years old, so periods could be longer with some companies today -F&G, certainly.

I guess I have just been lucky that the situation has never come up -not with me or anyone I know. Whether a year or two years, it would suck big time to have a big sale with the commission long ago spent and forgotten when the chargeback bill came in.

 

[EAJoe]

Does F&G have any good products? The only one I've seen is a 14 year annuity with a 6.5% cap.

Yes, they have some great products, and they revised their chargeback rule to 100% first year only. Prosperity Elite series has a guaranteed minimum death benefit rider making it great for people who are uninsurable and want to pass on money to their kids, Performance Pro has some great indexing options and an income rider that gives you a guaranteed base rate plus any indexed interest on the roll-up, and Safe Income Plus has great guaranteed income with a nice LTC doubler rider. I think a bunch of their recent changes have been part of an effort to get their rating up, who knows though.

 

[Klutch]

Yes, they have some great products, and they revised their chargeback rule to 100% first year only. Prosperity Elite series has a guaranteed minimum death benefit rider making it great for people who are uninsurable and want to pass on money to their kids, Performance Pro has some great indexing options and an income rider that gives you a guaranteed base rate plus any indexed interest on the roll-up, and Safe Income Plus has great guaranteed income with a nice LTC doubler rider. I think a bunch of their recent changes have been part of an effort to get their rating up, who knows though.

I'll look into them. Do they have direct contracting or is there an FMO you'd recommend? Also how's F&G's commission?

 

[SeniorMarketDesign]

Yes, they have some great products, and they revised their chargeback rule to 100% first year only. Prosperity Elite series has a guaranteed minimum death benefit rider making it great for people who are uninsurable and want to pass on money to their kids, Performance Pro has some great indexing options and an income rider that gives you a guaranteed base rate plus any indexed interest on the roll-up, and Safe Income Plus has great guaranteed income with a nice LTC doubler rider. I think a bunch of their recent changes have been part of an effort to get their rating up, who knows though.

Here's the official bulletin from F&G mentioning the revision. Posted it as a topic, but thought it would be worth posting in here.

Seconding your opinion, F&G does have a very strong line up of products in the annuity market currently. By our research they have one of the stronger Income Annuity (LIBR) products, as well as good caps on their other products.