Newspaper ad for Annuities

[Crabcake Johnny]

If you're talking about a specific product from a company it will definitely have to be run through compliance - and anything that would actually pull results would be shot down.

But you're correct, I don't think a general ad about annuities would have to be compliant. It would indeed be a difficult ad to work up.

 

[Vaughn Siller]

I guess I should have stated that I am not securities licensed and my company is licensed as an agency. Here's my thought / question; Every annuity mailer that is on the market usually has a statement that goes something like this: "Earn double or tripple the interest rate of cd's with no risk to principal balance" Can I use that statement in a print ad?

Also cold I put in a statement that said "Earn up to 24% on your money with no risk to your principal balance"?

The 24% comes from products that have a 2% cap on a monthly point-to-point crediting option.

Thoughts???

 

[Crabcake Johnny]

How is anything "no risk?" What if you needed to get a hold of every dime you put into an annuity 30 days after it's issued. It may be low risk, but certainly not no risk. Using that logic, a CD is "no risk."

 

[somarco]

"Earn up to 24% on your money with no risk to your principal balance"?

I wouldn't run that.

Your carriers probably have approved wording for advertising. Start there.

 

[Vaughn Siller]

This statement "Earn double or tripple the interest rate of cd's with no risk to principal balance" is in just about every Annuity mailer that that is offered. I assume the large "lead" companies must have received approval to use that statement.

Attached is an example.

 

[Winter_123]

I guess I should have stated that I am not securities licensed and my company is licensed as an agency. Here's my thought / question; Every annuity mailer that is on the market usually has a statement that goes something like this: "Earn double or tripple the interest rate of cd's with no risk to principal balance" Can I use that statement in a print ad?

Also cold I put in a statement that said "Earn up to 24% on your money with no risk to your principal balance"?

The 24% comes from products that have a 2% cap on a monthly point-to-point crediting option.

Thoughts???

The "earn double or triple" statement is not acceptable unless you have a fixed annuity in your product mix that does that. If you are referring to an indexed annuity it sounds like a statement rather than a possibility so it is not acceptable in my view.

The "earn up to 24%" may or may not fly depending on how aggressive the regulator or attorney is if you are on the ropes. In general, I think you are better off looking at how the annuity has actually performed and talking about a range around that number. Its the difference between representing a number that some people have actually achieved versus one that could theoretically be achieved but no one has, or just a handful.

I think the no risk to principal statment is okay. If they play by the rules there is no risk to principal and nothing is beyond *their* control so it is not a risk. I also think it is legit to represent that a CD has no risk to principal as long as their are disclosures about early withdrawal penalties. My view.

Winter

 

[arnguy]

I have two words of advice for you, Vaughn: BE CAREFUL!

 

[Crabcake Johnny]

Vaughn, a lot of these companies are doing first and asking for permission later. The rule being "better to ask for forgiveness then permission." Do a nice Google search for annuity lawsuits and you'll see companies like Allianz being sued by several state's attorney generals offices for millions. You have that kind of cake?

 

[Crabcake Johnny]

By the way, if you have something that can return 24% with no risk then call me immediately so I can dump every cent into it.

 

[somarco]

Vaughn, I don't know about you but I don't look good in orange or horizontal stripes. I also don't like somebody named Bubba telling me how pretty I am.

You really need to consider ignoring what everyone else does in their ads and ask a carrier for help. They may not have the flashiest ads, but at least they are designed to keep you out of hot water.