Resigned from Bankers Life

[goillini52]

I could be wrong, but if he were to cancel it after it were issued, I believe there would be something like a 9% penalty.

This is highly unethical. But before doing anything, i would carefully read the contract. I do not deal with annuities, so I do not know if there is a free look period, you may want to check with your state laws about that, and the contract itself.

I assumed that he just did it and there's the free look period.

 

[Norwayguy]

That is true, but if her son is not being honest about his financial incentive, I'm not sure he can be trusted when it comes to adequately explaining to her the terms and conditions, and the suitability, of the annuity itself. Consider also: 1) My wife has brain cancer. 2) Neither I nor her older son (age 28) were involved in the discussion prior to the application being submitted (and only then because I found out about it when I saw the check copy in our checkbook). 3) The agent (her son) wrote out the check himself (she is unable to write). I don't know if he also signed it for her (he does NOT have power of attorney). 4) The amount he wrote the check for was $250,000, even though she told him she was only considering putting $200,000 into the annuity. 5) He listed himself and his brother as the only beneficiaries, though later she told me there were supposed to be additional beneficiaries (I think she said a total of four), and that she only intended for $50,000 to go to each son, not $125,000.

Do you see any ethical or other concerns here?

I see many red flags here. The first step is since this is your wife's policy what does she want to do as you have no power in the situation. Do not delay the simplest solution is to free look the policy the amount of time you have is determined by state law and can be as little as ten days or as many as thirty days. If the free look period has passed and your wife wants out I would document everything and reach out to the Bankers home office and ask for the compliance dept. In my state most of the charges that stick on Bankers is management failure to supervise which this could fall under.

 

[PromoGuy3]

I see many red flags here. The first step is since this is your wife's policy what does she want to do as you have no power in the situation. Do not delay the simplest solution is to free look the policy the amount of time you have is determined by state law and can be as little as ten days or as many as thirty days. If the free look period has passed and your wife wants out I would document everything and reach out to the Bankers home office and ask for the compliance dept. In my state most of the charges that stick on Bankers is management failure to supervise which this could fall under.

In our state, the free look period is ten days. However, the agent (her son) told his older brother and his older brother's wife, who is a CPA (they got involved after I made his brother aware of what was going on), that the free look period is 30 days. Is it typical for a company to offer a longer free look period than required by state law?

Her son is saying the contract hasn't come back from the company yet, but my concern is that it could come back and the clock could start ticking without us knowing about it. However, my feeling has been that if such a thing did happen, the company would let us out of the contract rather than risk an ethics complaint filed against them with the state insurance commission, or possibly even a lawsuit. On the other hand, he could have showed the contract to my wife (or even just told her about it) without the rest of us knowing about it. My wife probably would not share that with me or her other son. It is very difficult for her to speak since her last operation, and since she knows I have a bit of a problem with her agent son anyway, she tends not to share anything with me concerning him or anything he does, especially if it is something I might have concerns about.

There were two reasons my wife was looking at an annuity. First, she has concerns about the stock market crashing and wanted no more than half of her money invested there. The second reason was that she was told her handwritten will was not valid (an attorney is now reviewing it to determine whether that is the case), and she wanted to make sure her sons each get $50,000 if she passes before I do. However, our investment portfolio manager informed us that only 25% of her funds are in the stock market, so that concern has been addressed. And her concern regarding the will is also being addressed. If the attorney says her handwritten will is not valid, then we will have a formal will drawn up that reflects her wishes.

One concern about the annuity itself has to do with the lack of liquidity. We do not know at this point what kind of uncovered medical expenses we may have, or what type of long-term care my wife might require. In the past five years (the first three of which we weren't yet married), she has drawn out an average of $30,000 per year, which is more than the 10% per year that we could withdraw from the annuity without penalty. And that $30,000 didn't include any substantial expenses related to her medical condition.

I think you might be right about the failure to supervise. I have a feeling his manager(s) might not be aware of what is going on, so my first step would probably be to contact his branch management.

 

[Indy007]

Wow... Just logged on and saw this thread. First off, your step son is making a LOT more than the $250 he claims. More around $8,750. 2nd, he wrote a check FOR her. Third, he wrote it for $50k more than she agreed. 4th, BLC's annuities are NOT competitive compared to the major players in the annuity market. 4th, check Bankers financial ratings. 5th, if you feel the need to get on an insurance website to ask for second opinions when you're dealing with family, there is something wrong beyond this.

My advice, cancel and unwind everything that has been done thus far. BLC has a 30 day Freelook provision starting the day your wife signs the delivery receipt. While it may cause some "riffles" between you, your WIFE and stepson for a bit, you all will get over it and even your stepson will thank you when he washes out of BLC.

There are many annuity producers on this site who could line you up with a MUCH better performing product. Feel free to call me with any questions, (pm me for #) PM me your state and contact info and I will help you, or put you in touch with someone who represents multiple carriers and will look out for ALL of your best interests.

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As a former BLC agent, maybe you (or someone else) can answer a question for me. My stepson is trying to sell my wife (his mother) a $200,000 to $250,000 equity indexed annuity. He says that because he has only been with the company four months he won't make the normal commission on it, but only about $250. Is there any way this could be true? If not, what would a typical commission for a BLC agent be on an EIA of this size?

Thanks!

That is NOT true unless he is bringing in an "expert" (another agent who's been there a month or two longer), in which case he'd split it either 50/50 @3.5% commission, OR 90/10 @3.5% stepsons favor if was in securities prior.

The office I worked in paid a sliding schedule when securities were involved. All favored the life only agent. If your sons office operates in the same, your stepson is making 90% of 3.5% if a broker is involved.

90/10- $200k+
80/20- $100-200k
70/30- $70-99,999k
60/40- $50-69,999k
50/50- Under $50,000

$250,000 * .035= $8,750 commission if wrote by himself

$250,000 * .035= $8,750 * .90= $7,875 commission if moving $ from securities with brokers assistance

 

[xrac]

It sounds to me like the stepson is manipulative, selfish, and dishonest.

 

[Newby]

If I were in your shoes I would unwind the deal and write the stepson a check for $300 for his trouble and everyone should be happy campers except the Bankers manager.

 

[xrac]

It sounds to me like the stepson is manipulative, selfish, and dishonest.

Typical Bankers type of conduct.

 

[Norwayguy]

Typical Bankers type of conduct.

I am sorry. If you are willing to be unethical to your own mother it does not matter where you work.