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I'm in process of doing a comparison of riders, expenses, etc of these 3 companies Variable Annuities --
Wanted to get input from the board - what do you like? Why?
Wanted to get input from the board - what do you like? Why?
Metlife, Jackson National, Lincoln
- Thread starter crimsontideagent
- Start date
- 10,589
Its not as cut and dry as you would like.
What is the money being used for? What is the clients situation?
What is the need? What are the wants? What are the circumstances? Is the $ Q or NQ?
You definitely have listed my top 3 go to carriers for VAs, but which one I go to is situation specific...
But to give you a broad answer.
LFG for NQ funds when distribution is of concern.
Pru for accumulation
JN for distribution of Qualified funds
But what is the case today very well could change in a month or two.
Also, this forum is no place to learn the riders on these products.
Cultivate a relationship with your local wholesalers and let them educate you on them.
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Wait, sorry, im crazy... you listed MetLife, not Pru...
in the case of Met, they are not competitive so I have no need to use them
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- Thread starter
- #3
- 175
Got 2 Qualified cases and 1 NQ - I'd say more for accumulation but possibly income. -
Why you say no Metlife - what makes you say they aren't competitive?
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Agree Scag about dependent upon the client situation but I believe there may be a teaching moment from what you posted for others. I agree your wholesaler can and should educate you completely, but I think that your observations can help too... For instance...
Why do you say JN for distribution of Qualified Funds?
Why Lincoln for distribution of NQ funds?
Why Pru for accumulation?
Why Met isn't competitive when many say they are top VA company?
Thanks - I'll add what I can too - I know many of the answers, but not all and some may benefit - Thanks!
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- 10,589
Their riders are not as competitive, & their sub funds to invest in are not as competitive.
When I say "not as competitive" I mean that there are more lucrative riders out there, and there are better quality investment choices.
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JN has some of the most lucrative income riders on the market; especially for taking income in the 60-70 range.
They also have some of the best investment selections out there.
LFG has the I For Life Rider; its a patented rider that is able to give you a step up in basis once you start taking income, thus minimizing taxes. Of course this is only for NQ $.
This is why I like LFG for NQ; especially when income is going to be taken.
Pru has the best accumulation riders & imo the 2nd best investment choices. They have a HD rider (highest daily) that is very hard to beat.
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- Thread starter
- #5
- 175
Thanks Scag -
So you don't like Met's GMIB or their Enhanced DB? I thought they were pretty strong riders.
Agree on the other points...
- 10,589
Like I said, it really just depends on the situation and the market conditions. Riders and the guarantees associated with them change all the time.
Its been a while since I have looked to see what Met's amounts are associated with the riders (i havent sold a VA in the past few months), but the last time I did they just were not the most lucrative when compared to what I mentioned.
JNL has a GLWB thats 4%-7% and is based on 6% growth for the first 10 contract years. It cost about 95bps if I remember right.
Compare that to Met's GWLB which is only 5%-6% and has no guaranteed growth. It also costs 125bps!!!!
(if i remember right, the numbers could be slightly different now)
Met's GMIB (again, if I remember correctly) has something like a 5% guarantee on deferral and a 5% guarantee on withdrawals.
It also costs around 100bps.
So why would I not go with JNL's GLWB??
Plus the fact that their sub accounts are much better just reinforces the decision even more.
And I almost never sell enhanced DB riders, why not just get a rider that locks in growth instead?
- 15,041
Well, because with Met, you can also annuitize the benefit base, which is nice. Also, their enhanced DB will pay out twice, and it pays out the benefit base. So, with Met you can take income, and when you die, your spouse can take over the contract. The contract will then have your benefit base as her account value. She can then take income, and when she passes, her benefit base will be the death benefit paid to your child.
Darn nice if you ask me. It isn't a perfect product, but that is pretty nice.
- 10,589
I never meant to imply that it wasnt nice. Met is definitely a competitor in the market, but I just find JNL & Pru offer better solutions to clients needs most of the time.
I am also a big fan of JNLs sub accounts. And after all, the purpose of a VA should be to go after market performance, not rider performance.
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- 15,041
I agree, I like how JNL lets you do whatever you want with the subaccounts. That isn't so nice about LFG and Met.
The Met contract definitely gets expensive once you add GMIB Plus and EDB, but I think its worth it.
JNL just revamped the product so you can play with it a bit. Give it higher or lower annual step ups and a choice between an annual or quarterly lock in.
And they added Blackrock to their subaccount options (sweet).
Lincoln's product is cool for non-q.
I'm not crazy about Pru or Met.
In truth I'm a JNL whore, great story, great product, and amazingly simple company to do business with. I know I have a bit of a reputation for being a WL mutual company slinger around here, but truth is I make the majority of my money with JNL (lots of annuity business and even some of my life business goes there), they are also the first company I ever got paid a commission from in this industry (that's right, even before I paid for a case with my career company I was doing business with them...rule breaker from the beginning).
And they added Blackrock to their subaccount options (sweet).
Lincoln's product is cool for non-q.
I'm not crazy about Pru or Met.
In truth I'm a JNL whore, great story, great product, and amazingly simple company to do business with. I know I have a bit of a reputation for being a WL mutual company slinger around here, but truth is I make the majority of my money with JNL (lots of annuity business and even some of my life business goes there), they are also the first company I ever got paid a commission from in this industry (that's right, even before I paid for a case with my career company I was doing business with them...rule breaker from the beginning).
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