How do I learn Annuities ..?
- Thread starter MedicareMutt
- Start date
That's right. There are major differences. The point I was making is that both industries sell your account. That was in response to someone who wasn't sure what the term meant.
- 5,020
I don't think they are accounts
1 is your debt, the other is your asset.
Your debt is never invested because the lender invested their money by giving it to you. The investors in the mortgage company care about where it is invested & will care about the practices the lender has to analyze who they lend(invest) money in, what neighborhoods, who appraised the value.
You should have the exact same cares as an annuity investor to know who the annuity company is lending the money to, where they are lending/investing & who is appraising/valuing those loans/investments they make
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But as I said I wasn't talking about that. I was ONLY talking about the original holder of your account selling your account to someone else regardless of what kind of account it was. I wasn't talking about the issues you are discussing.
- 7,089
@Allen Trent
@annon123
Hey guys, I appreciate you both and your willingness to share your knowledge and your experience.
Please don't get locked up in a wrangle over a novice question I asked.
Thanks.
LD
@annon123
Hey guys, I appreciate you both and your willingness to share your knowledge and your experience.
Please don't get locked up in a wrangle over a novice question I asked.
Thanks.
LD
- 10,820
You both are wrong. LOL. JK.
Seriously though. Reinsurance has gotten out of hand. And is certainly a greater risk to the client vs. a mortgage being sold.
I feel that reinsurance should have to be disclosed to the Policy Holder. In very clear language.
"hey mr annuity owner, 80% of your promise is not coming from this company, its coming from this bermuda based company you have never heard of and has a 2 page website"
How many people would still hand over hundreds of thousands to those A- rated annuity carriers? Or lock in lifetime income with them?
Kind of like an episode of Kitchen Nightmares with Gordon Ramsey.... when he brings out the raw food that is molded and spoiled, and shows it to the diners... they stop eating and leave.
Seriously though. Reinsurance has gotten out of hand. And is certainly a greater risk to the client vs. a mortgage being sold.
I feel that reinsurance should have to be disclosed to the Policy Holder. In very clear language.
"hey mr annuity owner, 80% of your promise is not coming from this company, its coming from this bermuda based company you have never heard of and has a 2 page website"
How many people would still hand over hundreds of thousands to those A- rated annuity carriers? Or lock in lifetime income with them?
Kind of like an episode of Kitchen Nightmares with Gordon Ramsey.... when he brings out the raw food that is molded and spoiled, and shows it to the diners... they stop eating and leave.
- Thread starter
- #47
MedicareMutt
Guru
- 377
Great analogy babe ...
- 5,020
Just to be clear, you are saying the other 2 are wrong, not me, right? I al only 2 days away from the end of 2024 & it would be really horrible to break my 363 day streak so close to end of the year
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Lloyds of Lubbock
Guru
- 757
"I feel that reinsurance should have to be disclosed to the Policy Holder. In very clear language."
Why?
Regardless of the reinsurance agreement the issuing company is responsible for paying the claim.
The reinsurance company can go out of business and it would have no effect on a death claim
Why?
Regardless of the reinsurance agreement the issuing company is responsible for paying the claim.
The reinsurance company can go out of business and it would have no effect on a death claim
- 10,820
The issue here is that we are not talking about Death Claims. We are talking about Annuity Payments.
And we are not talking about individual agreements on individual policyholders who happen to be high risk.
These are blanket agreements for 80% of the Guarantees that carrier makes.
In that type of scenario, the reinsurance company going bust would 100% impact policy holders. It would certainly go into the SGA process if that happened.
In this type of scenario, the policy owner is basically buying an Annuity from the reinsurer, not the one selling the paper.
Keep in mind, we are talking about very small B+ and A- rated annuity and fe focused carriers.
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