Just wanted to get some experts take on this product/carrier? Is it a good product for long term accumulation? What are some other options with other carriers? Also what crediting method do you like for a products where the client will be holding 10-15 years?
I've sold a few of these exact annuities - Ultra Future. The drawback is the 15 year surrender period. The 10% bonus helps this a bit. There is also a 5% bonus on the income rider, so the combined 15% premium bonus in those instances was appealing to a few clients.
Regarding long-term holders - unless they are using the income riders, it sometimes is more appealing to offer a shorter term product with the expectation of moving into a new annuity after the shorter surrender period ends. They sometimes feel like in 10 years a better option will be there.
As for crediting methods I try to promote a balance. For people with income riders, they like to pick the riskiest option and hope for a step-up. But, I try to explain the value of getting at least some interest in the underlying annuity if the indexes stink.
NWL's Global Lookback has some interesting crediting options to consider. Also take a look at LSW's and American Equity's products for the long-term holder.
I am sure others on this forum have more specific advice.
I hope you guys aren't telling your clients they get a 15% premium bonus on this product... The get a 10% premium bonus on the Acculumation Acct and the Income Rider will roll up at 5% on the Income Acct. Not trying to get picky with you, but that's where people get in trouble is when they start telling clients about a big "premium bonus".
Also, at only 5% roll-up there are much better options out there. We carry National Western so I'm not bashing it, but they are going to have to have some better renewals before they start getting "pushed" again. The appealing thing is their global lookback strategy, but with the two moving parts (spread and Part rate) Natl Western has had a history of dropping the cap after the first year.. I don't want my agents getting yelled at because their client is now stuck in a 15yr product with renewal rates near the gauranteed min.
