Fixed Annuity Rates - Who's Good Right Now?

[TRSecurity]

I can get you one that pays 4% (1K-10K), 4.25% ($10001-50K), and 4.5% (50,001 and over).

The only problem might be as to which state you are in.

Let me know which state you are in and I'll in turn let you know if it would be available for you.

Those are good current rates for a 7 year product. I personally use fraternals for shorter term annuities - 1, 2, 3 and sometimes 5 year surrenders.

 

[Todd King]

There may be better rates out there, but I've not seen them.

 

[0b1kanobee]

Those are good current rates for a 7 year product. I personally use fraternals for shorter term annuities - 1, 2, 3 and sometimes 5 year surrenders.

How do you come across or represent these to the client? Aren't they somewhat risky compared to having your money with an insurance company where those monies are backed by state funds and then they are reinsured when in worst case, another company would just buy them out?

Do fraternals offer this same degree of protection? Do you use the, "a fraternal has never gone under yet or failed to make due on their promise"?

 

[Norwayguy]

How do you come across or represent these to the client? Aren't they somewhat risky compared to having your money with an insurance company where those monies are backed by state funds and then they are reinsured when in worst case, another company would just buy them out?

Do fraternals offer this same degree of protection? Do you use the, "a fraternal has never gone under yet or failed to make due on their promise"?

I can't answer your question as I'm not the poster but its interesting that my states take is that the Guarantee Association should not be brought up by the agent during the sales process.....

As a side note they did come out and blast some agents for selling UCTs Med Supps that were not covered by Guarantee Association....After I saw that I called to find out and its a fine line that the DOI will take....if the client loses money then you better have told them...if they never lose money then you better not have told them....Don't you love Government.

 

[0b1kanobee]

Interesting. I have only brought it up a few times, possibly when the FDIC issue comes up but looking back on those presentations with the client, I realize where I did not do some things the way I should have or could have so that objection would not have come up.
Once you fully understand how to explain how annuities work and you can sell and feel confident with the company/s you represent, this objection doesn't arise so much.

I did however find it to be common when everything was collapsing a couple of years back, so there may have been more than a few instances where this safety net came up.

It is also much easier as I am sure you know Peter, that dealing with clients who already have annuities or are familiar with them, you get a much more receptive client and not so much these sorts of objections.

I am just curious how these fraternals work. I guess I could call one up and ask. I think I did before but I forgot. I know which one TRS security is speaking of since he wouldn't tell me a year ago and I had to hunt the darn entity down. It took me a little while but I found it!

 

[HarryRenard]

Equitrust has the Certainty select which has an 8yr that is right around 3.35% and the comp is 4.5% I think(+ a 1% bonus through december)
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There may be better rates out there, but I've not seen them.

Those rates do look good

What do the commissions look like.

Thank you.

A PM is fine if you dont want to post.

 

[0b1kanobee]

The Premier 3 with ING is a pretty good product with a nice first year 5.7 something percent, a decent minimum guarantee and a portfolio rate going forward. I know it is not locked but the effective rate of return on that product which is only five years could do very well if not better than these seven year products HOWEVER so could a FIA LOL Yuz takes your chances.

My friend has put close to a million with that Premier 3 this year. Nice 5 year product.

 

[Todd King]

Harry, the commission is certainly not the best at 3.5%, but if it is good for the client, then 3.5 is not that bad.

 

[0b1kanobee]

Harry, the commission is certainly not the best at 3.5%, but if it is good for the client, then 3.5 is not that bad.

Are you willing to share your source? A PM would be fine.

 

[arnguy]

Are you willing to share your source? A PM would be fine.

I believe TRK already posted that it CSA, a fraternal organization. Google their website.