That's a pretty broad brush you're painting with. I'm a registered rep and I don't think the market is the place for all people. But what I have seen is insurance agents without a securities license trying to fit every persons situation into an Index Annuity. That's not to say it happens with all agents, but if the agent doesn't have a securities license he/she will do everything possible to convince the potential client that an IA is the place for them. Otherwise he doesn't make any money.
Series 7
- Thread starter axeman462
- Start date
That's a pretty broad brush you're painting with. I'm a registered rep and I don't think the market is the place for all people. But what I have seen is insurance agents without a securities license trying to fit every persons situation into an Index Annuity. That's not to say it happens with all agents, but if the agent doesn't have a securities license he/she will do everything possible to convince the potential client that an IA is the place for them. Otherwise he doesn't make any money.
Sman, I understand where you are coming from. I use to be a RR and I tried to do what was best that fitted the clients needs. However, is it not accurate to assume that most wirehouse reps (i.e. ML, SB, etc.) make low compensation from insurance products once they go through their compensation grids and so are motivated to navigated clients into market related products just as the insurance agents are motivated to navigate clients to FIAs.
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xrac said:
But not all registered reps are wirehouse reps. I was a registered rep and very active in the insurance annuity market. I am no longer a registered rep but have no need to grab all of a clients money.
My approach is to get a piece and service the account.....They will typically be coming to me asking how to bring those other dollars to me when the product takes a down turn and the registered rep has not been heard from since they sold the product.
My big complaint is if a client asks me a question about thier VA or mutual fund I can not open the prospectus and read to them what is right thier in black and white.
I understand that many RRS got their starts with MM, NYL, NWML, Guardian, Met, etc. and so they are well ground in insurance products as well.
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I gave up my RR status a little over 2 years ago after almost 30 years as a RR. When I was a Guardian FR I HAD to keep it, and when I was a part-time salaried trainer I HAD to keep it.
The one argument for keeping it that is way off the mark to me is "you need the registration to talk to clients about their investments".
You need it to sell and move money, but you don't have to have it to ask clients how they feel about their investments.
"Are you happy with the returns?"
"Do you worry about the volatility?"
"Is the potential return worth the risk in your mind?"
"Do you understand your investments?"
"Are you getting the service you expect from your advisor?"
"Assuming you're getting a good match and are participating in your 401(k), do you think that maybe your 401(k) gives you all the market exposure you need?"
If talking about a client's equities required a license, almost every fee planner would be in jail.
The one argument for keeping it that is way off the mark to me is "you need the registration to talk to clients about their investments".
You need it to sell and move money, but you don't have to have it to ask clients how they feel about their investments.
"Are you happy with the returns?"
"Do you worry about the volatility?"
"Is the potential return worth the risk in your mind?"
"Do you understand your investments?"
"Are you getting the service you expect from your advisor?"
"Assuming you're getting a good match and are participating in your 401(k), do you think that maybe your 401(k) gives you all the market exposure you need?"
If talking about a client's equities required a license, almost every fee planner would be in jail.
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I was just trying to be generalistic...the point I was trying to make is most clients only have a clue about investing in market because broker only pitches mutual funds, etc.
Life agents are trying to educate a client that only has heard one approach to investing and nothing about FIA's. If they know anything about annuities they only know about variables...most of which had a bad experience and now want nothing to do with any annuity.
Also, your point about trying to make a commission is way off. I don't want to be in a position where a client can lose a lot of money...this is why I don't want securities license.
This comes back to my main point...if you want risk...I'm not your agent.
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but I did stay at a holiday Inn express last nite and I can invest you money!!!!
InsuranceCat
New Member
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If the client was asking which is better, her financial product that she was unhappy with and your proposed FIA, AND she asked for a direct comparison and for your advice, then I think you did the right thing by splitting the case with a financial planner who has the securities license.
However, if you were simply seeing if you could write a FIA application and submit transfer paperwork along with it for it to be FUNDED by a transfer, that question is for your carrier.
A large FIA carrier offers to select agents a free courtesy service of a medallion signature guarantee when the FIA application has funds coming from securities. The liquidation order comes from them.
Florida's insurance regulations are also quite strict especially for senior business.
When in doubt, always ask your manager!
However, if you were simply seeing if you could write a FIA application and submit transfer paperwork along with it for it to be FUNDED by a transfer, that question is for your carrier.
A large FIA carrier offers to select agents a free courtesy service of a medallion signature guarantee when the FIA application has funds coming from securities. The liquidation order comes from them.
Florida's insurance regulations are also quite strict especially for senior business.
When in doubt, always ask your manager!
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One fix with index annuities is to lower the surrender charges, cut the upfront comp and pay an asset based trail especially at older ages.
