- 868
i mean full walkaway must be permitted over a period of time
Unmitigated Commission Chargebacks
- Thread starter Viverrid
- Start date
I'm not trying to overthink it or redesign the product, but the high upfront commissions create problems. Many companies already offer structured commissions as an option for the agent, but perhaps it is time to consider only structured commissions rather than all of it up front. Customer service, retention, ect would all improve if the agent has a stake in keeping the customer informed and satisfied for the period of the annuity.
With most annuity companies the walkaway period is the surrender period. I would not suggest getting rid of that. With immediate death benefits, nursing home and terminal illness provisions, and annuitization options a full walkaway is not necessary if the right type of money is put into the annuity to begin with. You never put money that more than 10pct is needed under any realistic situation per year during the surrender or contract period. You don't put emergency or income money in an annuity, but in many cases it is an ideal place for an older person to use as a safe harbor for no touch money.
If full walkaway over a period of time is needed, the term of the annuity should reflect that period, whether it is 1 year or 14 years.
With most annuity companies the walkaway period is the surrender period. I would not suggest getting rid of that. With immediate death benefits, nursing home and terminal illness provisions, and annuitization options a full walkaway is not necessary if the right type of money is put into the annuity to begin with. You never put money that more than 10pct is needed under any realistic situation per year during the surrender or contract period. You don't put emergency or income money in an annuity, but in many cases it is an ideal place for an older person to use as a safe harbor for no touch money.
If full walkaway over a period of time is needed, the term of the annuity should reflect that period, whether it is 1 year or 14 years.
- 868
if you mean trails I agree because the agent is paid far more in trails than he will be paid in upfront commission.
However like any other product periodic contact is necessary with clients call them annual policy reviews.
However I believe sales would go through the floor and more agents would sell variable and mutual funds if structure comp became the norm rather than a choice
However like any other product periodic contact is necessary with clients call them annual policy reviews.
However I believe sales would go through the floor and more agents would sell variable and mutual funds if structure comp became the norm rather than a choice
Some companies take that approach - some don't.
Be an informed agent and do some research on the company BEFORE you start selling their products. It doesn't matter how much they pay in commissions if you can never spend any of it without looking over your shoulder.
- 11,280
Thank you for the advice. Where were you 7 years ago?
I'm not trying to be a jerk , but I've been saying the same thing for over ten years. Some agents couldn't see past the POTENTIAL income.
Someone else posted in this thread that there should be a limit to the number of years for a chargeback - sort of a statute of limitations. I agree as long as the agent did not commit provable fraud. Of course then you would have to get all 51 insurance departments to agree ... and those departments are run by former (and future) insurance company employees ..................................
- 11,280
Yeah, I read that 7 years ago...
And maybe do some research before answering a thread that hasn't been commented on in 7 years.
- 15,319
Speaking of a fresh approach, I've been making my spaghetti pasta in a frying pan covered with cold water. Saves lots of time and never have anything sticking.
Rick
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