New to Annuities

[Charpress]

Here is a link to that product. I have not looked at it closely yet.

Safe Return Annuity

Crap. I tried to sit through that 15 minute learning experience and my eyes just glazed over. Good luck explaining that to a client. I quit half way through.

 

[Norwayguy]

Crap. I tried to sit through that 15 minute learning experience and my eyes just glazed over. Good luck explaining that to a client. I quit half way through.

Is it just me or has GAFRIs literature about Index products been going downhill?

 

[jmhopkins40]

If a new agent were to sell an average fixed index annuity of $150K with perhaps alliance, aviva,american equity etc..what would the agents average commission be?????

 

[R. Paul Aguirre]

Well unless you are already licensed with Aviva or can find a marketing group that has not gone over their quota then you can forget about any of their products for this year. If you can find an aviva agent their 10% bonus product is going down to 6% by the 17th I believe so you had better get those apps in boys.
- - - - - - - - - - - - - - - - - -

If a new agent were to sell an average fixed index annuity of $150K with perhaps alliance, aviva,american equity etc..what would the agents average commission be?????

well as far as etc. goes

Lincoln Financial
Integrity Life
Americo Financial all have products that offer 5%

 

[Ichiban]

If a new agent were to sell an average fixed index annuity of $150K with perhaps alliance, aviva,american equity etc..what would the agents average commission be?????

Well the Average premuim for an annuity is closer to about $50,000 to $60,000 I beleieve industry wide so $150,000 would not be average but that aside it depends on what product you sell.

There are longer and shorter surrender schedules and bonuses, etc which all figure into things. Typically if you offer a bonus product the commission is a little smaller than a product with no bonus but this is not always the case just a general rule. If you offer a longer surrender product the commission is often little higher. It also depends on what level contract you have, the age of the client is very important to know as some have lower commissions for older aged clients, and also the company as different company's have different commission structures. You can also choose with some company's if you want all your commissions up front or paid as a trailing commission over a number of years.

Bottom line is that it can range from 2% to 9% with most falling in the middle of that. I think I read someplace an average was around 5-6%??? I can't really remember but I think that sounds about right. ALso commissions have been dropping over the past year so this number may be even a little smaller now. Aviva, and Equitrust had massive commission reductions and others also had changes as well.

 

[Charpress]

Some that were 9% at street went to 8%, and are now going down to 7%.

This is a trend. The companies are cutting corners and I think some of the big shots at Allianz and the others had this conversation in the last 2 years:

"We have reserve requirements starting to squeeze us, we have regulators that before long will make us disclose commissions, we are in a sellers market where we can compete one-on-one with the big brokers for investor money, what can we do to make more money?"

Head scratching for a few seconds, then:

"Say why don't we cut commissions in half or maybe by two-thirds? Of course we won't do it all at once..."