flexible premium deferred annuity

[Allen Trent]

I'm not looking to make any money on the "Savings" side.

We would have no issues referring that out.

Considering most clients are not putting the $20k per year max each into their 401k, why not just simplify it & tell them to save it there? It would save you a ton of time, be very simple, in most cases be the right advice, etc.

If neither spouse has 401k, then refer out to someone you do your investing with or the financial guy in your BNI leads group or Chamber of commerce group

 

[Tahoe Ray]

Want to be able to show people an easy way to Buy Term & Save The Difference . . .

I have the Term side figured out.

We are going to be marketing to younger folks and lower / middle income prospects.

A forum Member mentioned the company / product below. The principal is safe and earns a minimum 1.5% and possibly more. Has the normal withdrawal limits and fees. But - the idea is to "save" money for retirement.

I'm interested to learn if their are similar Annuity products available with small initial deposit and small periodic deposits - weekly / monthly?

Product needs to be able to be marketed by someone with just a Life license - not Securities.

Thanks in advance ( be nice ) . . .

https://www.federallife.com/wp-content/uploads/2016/11/L-7462.pdf

Your agents will make no money doing this and it will create nothing but liability.

 

[myinsurebiz]

Your agents will make no money doing this and it will create nothing but liability.

They'll make money on the Term & FE side + all the other ancillary products - STM, Cancer, HIP, DVH, Medicare, etc.

They can make money on Annuities - just not much on one like the Flex Saver.

I'll make sure my E&O is active

 

[Tahoe Ray]

They'll make money on the Term & FE side + all the other ancillary products - STM, Cancer, HIP, DVH, Medicare, etc.

They can make money on Annuities - just not much on one like the Flex Saver.

I'll make sure my E&O is active

The amount of oversight in the annuity market is ridiculous.

Unless you and your agents have experience offering them, just punt.

The only people make money on $50/mo annuities work in the group space.

Not trying to be a jerk, just letting you know this is a terrible idea.

 

[Allen Trent]

They can make money on Annuities - just not much on one like the Flex Saver.

Not true. No matter if it is that product or any other flex prem annuity or variable annuity or mutual fund it will be 2-5% comm. $50 mth is still only $1-$3 per month for the ones that actually follow through & complete all the mountains of paperwork to give you the $50 deposits. No one makes money on contributions & focuses on rollovers.

 

[myinsurebiz]

The amount of oversight in the annuity market is ridiculous.

Unless you and your agents have experience offering them, just punt.

The only people make money on $50/mo annuities work in the group space.

Not trying to be a jerk, just letting you know this is a terrible idea.

You always have sound advice Ray.

How would this play out?

With the Flex Saver - someone can put $50 - $100 a week in Flex Saver with NO risk, earning 1.5% ( more than most Bank Savings Accounts ) and in month #25 they move the principle contributions in Years 1 and 2 to a nice 10 - 15 year Fixed Indexed Annuity that has a 5%+ Bonus with better upside and a 0 floor ( Bonus can be greater than 5% with some Annuities ). True - the Client pays the 5% penalty - but they also get the new Annuities Premium Bonus.

Rinse & Repeat every 2 years. Doable?

In 20 years - they could have 10 different Annuities equaling $50k - $100k in contributions not including whatever interest they've earned.

Keep in mind - the Agent isn't concerned with the commissions from the Flex Saver - but rather the commissions from the new FIA + the Agent gets the commissions on the other business on the books.

Trying to make Buy Term & Save The Difference great for everyone involved.

 

[myinsurebiz]

Not true. No matter if it is that product or any other flex prem annuity or variable annuity or mutual fund it will be 2-5% comm. $50 mth is still only $1-$3 per month for the ones that actually follow through & complete all the mountains of paperwork to give you the $50 deposits. No one makes money on contributions & focuses on rollovers.

Exactly . . .

Rollovers and then the commissions from all the other business the Agent has with that Client.

Thanks for the advice Allen. I totally respect your thoughts.

 

[Allen Trent]

You always have sound advice Ray.

How would this play out?

With the Flex Saver - someone can put $50 - $100 a week in Flex Saver with NO risk, earning 1.5% ( more than most Bank Savings Accounts ) and in month #25 they move the principle contributions in Years 1 and 2 to a nice 10 - 15 year Fixed Indexed Annuity that has a 5%+ Bonus with better upside and a 0 floor ( Bonus can be greater than 5% with some Annuities ). True - the Client pays the 5% penalty - but they also get the new Annuities Premium Bonus.

Rinse & Repeat every 2 years. Doable?

In 20 years - they could have 10 different Annuities equaling $50k - $100k in contributions not including whatever interest they've earned.

Keep in mind - the Agent isn't concerned with the commissions from the Flex Saver - but rather the commissions from the new FIA + the Agent gets the commissions on the other business on the books.

Trying to make Buy Term & Save The Difference great for everyone involved.

Abort, abort. This is wrong on so many levels & will get you & any advisors in a lot of hot water churning accounts in this fashion & restarting surrender charges moving money from 1 annuity to another one, etc. it will look like commission needs analysis on the part of the advisor.

 

[myinsurebiz]

Abort, abort. This is wrong on so many levels & will get you & any advisors in a lot of hot water churning accounts in this fashion & restarting surrender charges moving money from 1 annuity to another one, etc. it will look like commission needs analysis on the part of the advisor.

Why can't a client move their money however they wish if it is better for them?

Save up some money and then move it to a better returning product?

Keep in mind - only moving contribution $'s - not earned interest. The "Earned interest" may be large enough to cover the withdrawal penalty %.

If there is a law against this - I'd love to know about it.

Thanks again Allen for your thoughtful comment.

 

[myinsurebiz]

How could a 1035 transfer work in this situation?

Seem like that could work in some cases. But - we are talking chump change in these scenarios.