Got a Client that is Insisting

[bill3173]

that I talk her into purchasing an index annuity and wants me to tell her it will perform better than a mutual fund.

I'm curious as to how some of the agents that handle this for a living respond to a client that is a "likely buyer", and who is driving the sale, but practically demanding that you make things up for them to feel better about it.

She has been a medicare client for 2 years, though I've known her a little longer. She always drives the sale. She actually called me to purchase her supplement, after being bombarded with calls and visits after turning 65.

Next thing that happened that prompted her to call me is a couple of captive agents paid her a visit and planted the idea in her head that she needs an annuity. She calls me 6 months later to discuss it.

She's done her home work and wants to move $200K+ to an EIA. The problem is she is insistent that I "make her feel better" by comparing to the stock market. And I don't mean she wants to lightly discuss it, I mean hours of conversation about what she has and what she wants...I've gone over the differences in as much detail as reasonable, but have all but said, look, if you want something more than a guaranteed min interest rate and safety of principal, then let's forget it.

 

[Tahoe Ray]

that I talk her into purchasing an index annuity and wants me to tell her it will perform better than a mutual fund.

I'm curious as to how some of the agents that handle this for a living respond to a client that is a "likely buyer", and who is driving the sale, but practically demanding that you make things up for them to feel better about it.

She has been a medicare client for 2 years, though I've known her a little longer. She always drives the sale. She actually called me to purchase her supplement, after being bombarded with calls and visits after turning 65.

Next thing that happened that prompted her to call me is a couple of captive agents paid her a visit and planted the idea in her head that she needs an annuity. She calls me 6 months later to discuss it.

She's done her home work and wants to move $200K+ to an EIA. The problem is she is insistent that I "make her feel better" by comparing to the stock market. And I don't mean she wants to lightly discuss it, I mean hours of conversation about what she has and what she wants...I've gone over the differences in as much detail as reasonable, but have all but said, look, if you want something more than a guaranteed min interest rate and safety of principal, then let's forget it.

Are you securities licensed?

 

[bill3173]

Are you securities licensed?

I have a NC DL, that should be enough.

 

[Newby]

that I talk her into purchasing an index annuity and wants me to tell her it will perform better than a mutual fund.

I'm curious as to how some of the agents that handle this for a living respond to a client that is a "likely buyer", and who is driving the sale, but practically demanding that you make things up for them to feel better about it.

She has been a medicare client for 2 years, though I've known her a little longer. She always drives the sale. She actually called me to purchase her supplement, after being bombarded with calls and visits after turning 65.

Next thing that happened that prompted her to call me is a couple of captive agents paid her a visit and planted the idea in her head that she needs an annuity. She calls me 6 months later to discuss it.

She's done her home work and wants to move $200K+ to an EIA. The problem is she is insistent that I "make her feel better" by comparing to the stock market. And I don't mean she wants to lightly discuss it, I mean hours of conversation about what she has and what she wants...I've gone over the differences in as much detail as reasonable, but have all but said, look, if you want something more than a guaranteed min interest rate and safety of principal, then let's forget it.

You explain to people that the people who are happy with indexed annuities are people who want something that performs completely different from stock market investments. if she wants something comparable to the market she needs to talk to a stock broker.

The annuity eliminates losses from when the economy goes downward (as measured by the S&P 500.) it limits the growth you get when the economy swings upward. People who are happy with their annuities are glad to have smaller gains in exchange for no losses.

The annuities also allow you to quote a guaranteed minimum income for life. Most investment products can and often do perform better but would fall short on guaranteeing it.

People who should buy annuities are seeking guarantees NOT top market performance.

 

[bill3173]

You explain to people that the people who are happy with indexed annuities are people who want something that performs completely different from stock market investments. if she wants something comparable to the market she needs to talk to a stock broker.

The annuity eliminates losses from when the economy goes downward (as measured by the S&P 500.) it limits the growth you get when the economy swings upward. People who are happy with their annuities are glad to have smaller gains in exchange for no losses.

The annuities also allow you to quote a guaranteed minimum income for life. Most investment products can and often do perform better but would fall short on guaranteeing it.

People who should buy annuities are seeking guarantees NOT top market performance.

Very Good, that's almost verbatim what I told her when she called back last night.

The funny part is she starts off by selling me on why she needs one, then we pick it apart. Last night we rei-nvent the wheel, and next thing I know she wants to get another annuity with another lump sum of non qualified money.

This is one of those cases that even if it goes through, there's no shooting off any rockets until at least a year goes by, maybe 2-3.

 

[GeminiGroup]

IMHO this client is BEGGING you to get yourself in more trouble than she'd be worth......

Anytime you can clearly say that a client is...
"demanding that you make things up"
that is EXACTLY how it will go down in front of the insurance commissioner.

You say she says "wants me to tell her it will perform better than a mutual fund" and that may be exactly how she testifies...
"Bill3173 told ME ..... it will perform better than a mutual fund"

IMO you have a ticking time bomb waiting to stab you in the back you indicated she's a homework doing flip/flopping mess.......so who do you think will be thrown under the bus when NOT IF but WHEN this nut case decides to flop... after this case is written and she 'finds' a reason it wasn't quite what she wanted? (you know she will)

Yep...YOU and I'm sure you feel 100% comfortable she'll just eat any loss as HER mistake, right?

All this talk of her driving the sale will be ancient history as you back peddle into a world of chit behind a deal you didn't even solicit in the 1st place....if it were me I'd send ass right back to the 'smart' guys that put that nonsense in her jumbled head to start and them write her

but again that's just me...if you want to WAIT till "a year goes by, maybe 2-3."
to 'see' IF this chit blows up in your face go right ahead and deal with crazy
sometimes when crazy is YELLING to you
"I'm going to be nutty as a fruitcake" believe it

 

[bill3173]

IMHO this client is BEGGING you to get yourself in more trouble than she'd be worth......

Anytime you can clearly say that a client is...
"demanding that you make things up"
that is EXACTLY how it will go down in front of the insurance commissioner.

You say she says "wants me to tell her it will perform better than a mutual fund" and that may be exactly how she testifies...
"Bill3173 told ME ..... it will perform better than a mutual fund"

IMO you have a ticking time bomb waiting to stab you in the back you indicated she's a homework doing flip/flopping mess.......so who do you think will be thrown under the bus when NOT IF but WHEN this nut case decides to flop... after this case is written and she 'finds' a reason it wasn't quite what she wanted? (you know she will)

Yep...YOU and I'm sure you feel 100% comfortable she'll just eat any loss as HER mistake, right?

All this talk of her driving the sale will be ancient history as you back peddle into a world of chit behind a deal you didn't even solicit in the 1st place....if it were me I'd send ass right back to the 'smart' guys that put that nonsense in her jumbled head to start and them write her

but again that's just me...if you want to WAIT till "a year goes by, maybe 2-3."
to 'see' IF this chit blows up in your face go right ahead and deal with crazy
sometimes when crazy is YELLING to you
"I'm going to be nutty as a fruitcake" believe it

You really read the post, and made an excellent assessment of the situation.

I was sitting on the fence as to whether or not to pull the plug on this thing, after reading your comments. The money would likely transfer in the next couple of days, but as luck would have it, she called me back again to discuss it, in a circular fashion.

It was not easy, but I told her we were going to withdraw the app, this thing wasn't for her. She seemed a little surprised, but I got the feeling that it was going to blow up sooner or later.