I just got back in the insurance biz. Aced my state test. Wondering should I sign up for my series license. My question is what are the benefits of getting a series license? I know I can't sell variable annuities without a series license. Are variable annuities pay more commission than regular annuities? Also when I was in the business years ago I never bothered with annuities, so what is the commission like? A friend of mine said I am missing out. I would like another opinion. Thanks! What type of series license should I get? 7&66?
Series License
- Thread starter Steve20
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- 11,266
Variable annuities have changed since 2008. Higher costs for the lifetime benefits. Don't forget the payout grid and the heightened compliance standards (and costs) with being affiliated with a broker/dealer.
Commissions on a 7-year Variable Annuity were about 7% GDC... that goes through the b/d payout grid. If the payout grid was 35%, then you get 35% of that 7%. The street payout for most Fixed Indexed Annuities is also 7%... without a payout grid. That means you get the entire 7% yourself.
Now, if you still want to sell commissionable variable annuities, you'd minimally need a series 6 & 63 and be registered with a broker/dealer.
The attached PDF article would also be worth reading and considering.
Now, if you want to offer wealth management and/or AUM services, then you'd only need a Series 65 to file as an RIA... and that business model is more "forgivable" in terms of compliance because of your fiduciary duty to clients with securities management. There are fee-based variable annuities (I think Jackson National is the leader on those), but they may not be really worth considering.
Commissions on a 7-year Variable Annuity were about 7% GDC... that goes through the b/d payout grid. If the payout grid was 35%, then you get 35% of that 7%. The street payout for most Fixed Indexed Annuities is also 7%... without a payout grid. That means you get the entire 7% yourself.
Now, if you still want to sell commissionable variable annuities, you'd minimally need a series 6 & 63 and be registered with a broker/dealer.
The attached PDF article would also be worth reading and considering.
Now, if you want to offer wealth management and/or AUM services, then you'd only need a Series 65 to file as an RIA... and that business model is more "forgivable" in terms of compliance because of your fiduciary duty to clients with securities management. There are fee-based variable annuities (I think Jackson National is the leader on those), but they may not be really worth considering.
- 11,266
Btw, just so you know, there are a LOT of rules about annuities and retirement income planning. I looked at some of your past posts (I know there are only 20), but your focus is in term, whole life, and final expense.
Retirement income planning using fixed and fixed indexed annuities is a whole other animal with many areas of financial and retirement planning that you'd need to get really comfortable with. Lots of landmines in this part of the business.
Retirement income planning using fixed and fixed indexed annuities is a whole other animal with many areas of financial and retirement planning that you'd need to get really comfortable with. Lots of landmines in this part of the business.
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I’m not too impressed by anyone who is primarily concerned about the commission.
- Thread starter
- #6
- 11,266
So, you're a non-profit agent?
Commissions or business revenue are always a part of the equation to determine if a business endeavor is worth pursuing or not.
Now, once you're with a client and you're choosing between products... and you're selling a lower-quality product because you want the potentially higher commission for it compared to the better product... THEN you have an ethical dilemma and I would agree with you.
But to determine if a business endeavor - such as specializing in retirement planning using annuities - if it's worth it or not... revenue is always a part of the equation.
How else would you make a business decision if you're not including potential revenue?
- 333
I’m not too impressed by anyone who is primarily concerned about the commission.
I suppose I’m non profit. I sold my first insurance product in July 1971. Still making my way into the office 6 days a week. I’ll be there tomorrow, Saturday, at 7:30 am. Fortunately, I don’t go to the office on Sunday very often.
Some people would die and go to hell before selling an annuity.
I suppose I’m non profit. I sold my first insurance product in July 1971. Still making my way into the office 6 days a week. I’ll be there tomorrow, Saturday, at 7:30 am. Fortunately, I don’t go to the office on Sunday very often.
Some people would die and go to hell before selling an annuity.
- 11,266
This guy retired and died when he was 102 years old... so there's still hope for you.
https://insurance-forums.com/community/threads/the-100-year-old-insurance-agent.92777/#post-1225334
That would mean that you don't understand their value, and that would fit your value system. Although I would've thought that after 46 years in the business, your mind would've been sufficiently open to other ideas by now.
I'd recommend checking out Tom Hegna's YouTube channel and interviews with Steve Savant because only annuities can help with longevity risk in retirement.
Tom Hegna
You can also check out Stan "The Annuity Man" interview segments with Steve Savant.
Doesn't that also mean that your opinion on buying and selling annuities... for the purposes of this thread... is null and void of any consideration? That's like asking Fisher Investments if you should go into the annuity business.
NEWS FLASH: This is the annuity sub-forum... so we're gonna talk about how to sell annuities with the pitfalls and the pros/cons of them.
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I hold a Series 7 and Series 66. If I had it all to do over again I would just get the 65.
What is your current market ?
