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I'm not an annuity guy, but why would that even make sense to sell?
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There are products that offer Return of Premium option. Surrender charges are a misnomer IMO. They are actually Contingent Deferred Sales Charges (kind of like B-shares of mutual funds).
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Love it, "loginname", absolutely love it!
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As has been mentioned there are ROP products and make sure you understand it is just a return of the original premium and the products will have the normal declining surrender charges. Annuities are designed as long term vehicles if your clients is looking short term an annuity normally isn't a great vehicle. Also don't forget those surrender charges are part of the reason the carrier can offer better rates, its why a 5 year CD pays more interest than a savings account.
The great thing about a fixed annuity is that you "know" right now what your worst case scenario is now, 2 years from now or thirty years from now based on guaranteed minimum interest rates, surrender charges and settlement options built into the contract. Things can be better but never worse than whats written in the contract, there isn't many other vehicles that can make that same claim...well there is also permant life insurance
Where is the money now? Apparently Liberty Mutual has a SPWL product that is 100% premium at issue. There is some sort of surrender charge if you do partial withdraws beyond the free withdrawal amount, but if you do a full surrender you get everything back. I have no idea if it's ROP or whatever the CV is upon surrender. A friend of mine was telling me about this (second hand, he doesn't work for Liberty Mutual).
It is a SPWL product and not an annuity (I believe) so it's not going to take qualified money
It is a SPWL product and not an annuity (I believe) so it's not going to take qualified money
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Prudential ASLII is a no surrender VA, you could put them in a fixed or a bond allocation.
It pays around 2% I think
It pays around 2% I think
