- 11,457
No. That's about as "dumbed-down" as it gets.
Typicall Comissions ?
- Thread starter Ksutton
- Start date
- 30,273
Study the paragraph Trader Tom...your answer's in there.
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"One way for insurers to offset that loss is to impose surrender charges — a “percentage of contract value” charge on early surrenders which declines over time to zero at the point where the insurer has “earned back” the acquisition costs. Another way is for the insurer to impose a “front end” sales charge. A third way is to reduce the interest it would otherwise credit each year (perhaps by imposing annual contract fees)."
- 5,996
Study the paragraph Trader Tom...your answer's in there.
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"One way for insurers to offset that loss is to impose surrender charges — a “percentage of contract value” charge on early surrenders which declines over time to zero at the point where the insurer has “earned back” the acquisition costs. Another way is for the insurer to impose a “front end” sales charge. A third way is to reduce the interest it would otherwise credit each year (perhaps by imposing annual contract fees)."
So - the A Mutual Fund is deducting $4k to $5k in fees, etc from the get?
- 30,273
Ka - Ching.....on the $100K example yes.
- 5,996
I like Sentinel's 3.0 % on a 5 year MYG that compounds. They have a Rider Buffet you can choose from if needed . . .
- 30,273
But every item you choose from that buffet reduces the 3%.
- 5,996
Correct - but if you don't need them - 0 is 0 . . . Plus, theirs compounds - which is nice . . .
Almost all fixed annuities compound. One of their most expensive "riders" is waiver of surrender on death which is pretty huge for the fixed annuity crowd.
The only place where this carrier is attractive is FL where the death benefit is built in (maybe there are other states but that is the first one that jumps to mind).
Oxford, AIG, and The Standard would all be preferable IMHO...better financial ratings and similar interest rates when looking at adding the DB/RMD riders w/ this carrier.
- 5,996
Thanks Ray! I'm getting Annuities with AIG this week. Do you suggest I get Oxford as well? They have aggressive rates in the SIWL market too! But - heard they are PITA to work with . . .
I would go with Standard and AIG over Oxford (ratings) but Oxford has slightly better rates and smaller minimums (top AIG and Standard rates are 100k+) so they are worth having.
Plenty of annuity carriers are a PITA to work with so pick your poison.
