Forethought Annuity Chargeback Question.

[navigator]

I have a question, I had a client who had 3 annuities with Forehthough, all 3 reached their 1 year anniversary date September 12, 2016. I received a phone call from the clients son last week that the client passed away on August 19, 2016. My question is, will I receive a chargeback because the client "died within the first policy year" or is it if the claim is processed within the fist policy year? Either way I would just like to know what to expect.

Thanks!

 

[jacobtn]

I have a question, I had a client who had 3 annuities with Forehthough, all 3 reached their 1 year anniversary date September 12, 2016. I received a phone call from the clients son last week that the client passed away on August 19, 2016. My question is, will I receive a chargeback because the client "did within the first policy year" or is it if the claim is processed within the fist policy year? Either way I would just like to know what to expect.

Thanks!

yes, probably 50% of the commission. some will prorate it on a monthly basis (just charging you back one month), but most do 100% in first 6 months, 50% remaining 6 months.

I'm assuming they were MYGA's since there were 3?

 

[scagnt83]

Policy year and calendar year are two different things. Ive never had a chargeback on an annuity but does it not go on Policy Year and not Calendar Year?

 

[navigator]

They do go on policy year, not calendar. I was just curious if they would chargeback the full comm because he passed 1 month before policy year or if they wouldnt because the claim was after 1 policy year..

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yes, probably 50% of the commission. some will prorate it on a monthly basis (just charging you back one month), but most do 100% in first 6 months, 50% remaining 6 months.

I'm assuming they were MYGA's since there were 3?

These were indexed annuities.

 

[scagnt83]

They do go on policy year, not calendar. I was just curious if they would chargeback the full comm because he passed 1 month before policy year or if they wouldnt because the claim was after 1 policy year..

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Sorry, for some reason I thought both months were Sept.

It probably wont be the whole amount. Most carriers do some type of pro-rata type calculation. Its carrier specific to a large extent. Some might hit you with 50% and others might be as low as 10%.