Why don't highly rated companies pay higher fixed rates?

shooter

Guru
100+ Post Club
I have looked at annuity rates over the last month.
Interest rates are going up, and so are annuity rates.

But it seems the trend is lower rated companies pay a higher
rate that A+ companies.
Similar to bonds and their ratings.

Maybe the B++ and A- companies must do so to attract business.
Oceanview, Canvas, and Framers & Traders, all low rated companies
I had never heard off till this week.

Question, how comfortable would you be putting your money
with a lower rated company?

Midland looks like a nice A+ company to use, others?

Yes, I know about guarantee funds, but look at the threads
on the forum about Colorado Bankers.
I don't need that type of headache.

This question is about fixed rate products, not indexed ones.

By the way, buy I bonds if you have the cash. over 9% for 6 months
tied to inflation. Limited to $10,000 per person per year.
 
Maybe the B++ and A- companies must do so to attract business.
Oceanview, Canvas, and Framers & Traders, all low rated companies
I had never heard off till this week
That's exactly why they offer higher rates.

Oceanview has been sucking up cash with competitve rates for well over a year now. They even have a 2 year product.

Canvas is just some online b.s. that says their annuities don't pay commissions (probably because they have them baked in somewhere)
so they can pay you more.

I've never heard of Framers and Traders. Are they a fraternal or something?



Question, how comfortable would you be putting your money
with a lower rated company?

A- or higher (AM Best), 5 years or less surrender, I'm all good.

Midland looks like a nice A+ company to use, others?

They are not...at least right now service has been abysmal.

By the way, buy I bonds if you have the cash. over 9% for 6 months
tied to inflation. Limited to $10,000 per person per year.
It's a great idea.

Just keep in mind that you can't tap into it for the first year and like fixed annuities, they have penalties (5 years I believe) for early liquidation.
 
That's exactly why they offer higher rates.

Oceanview has been sucking up cash with competitve rates for well over a year now. They even have a 2 year product.

Canvas is just some online b.s. that says their annuities don't pay commissions (probably because they have them baked in somewhere)
so they can pay you more.

I've never heard of Framers and Traders. Are they a fraternal or something?





A- or higher (AM Best), 5 years or less surrender, I'm all good.



They are not...at least right now service has been abysmal.


It's a great idea.

Just keep in mind that you can't tap into it for the first year and like fixed annuities, they have penalties (5 years I believe) for early liquidation.
I believe he means Farmers and Traders which is a part of CFG Financial.
 
I believe he means Farmers and Traders which is a part of CFG Financial.

I did mean Farmers and Traders.
Nice job Rouse catching that.

I was thinking about Midland because you can go direct and
avoid using an IMO.






Just keep in mind that you can't tap into it for the first year and like fixed annuities, they have penalties (5 years I believe) for early liquidation.[/QUOTE]

With I bonds you can't get your money for one year.
There is a 3 months loss of interest if you sale before five years.
With inflation going double digit, it may renew at higher than 9% in
the next six months.
You only buy them at treasure direct.

Which companies would you folks look to do business with?
 
My brothers been a stock broker 29 yrs . He’s raving about an index annuity with smyetra . He said lifetime downside protection of 10% or something and no caps on upside with low fees . He’s been putting millions in . Annuity salesman in the catbird seat right now . Annuity sales at record levels . You got some big salesman making $5 mil plus
 
Ray,
are you talking about Midlands annuity side or
the life side?
Maybe both sides are abysmal.

He is talking about the annuity side.

In my experience, Midland uses first year teaser rates to get business... then drops them like a rock a couple years later. Dont be fooled.

Also, going through an upline is not really a big deal at all. You often can find one that will pay above street if you dont need support. Direct contracting will never pay you above street unless production moves you up the expense grid.
 
Last edited:
My brothers been a stock broker 29 yrs . He’s raving about an index annuity with smyetra . He said lifetime downside protection of 10% or something and no caps on upside with low fees . He’s been putting millions in . Annuity salesman in the catbird seat right now . Annuity sales at record levels . You got some big salesman making $5 mil plus
If it has "downside protection" it's not a fixed indexed annuity. The carriers use all of this language interchangeably but an FIA inherently has no downside.

That sounds like a hybrid product that you need a securities license to sell (which almost no one on this forum has).

They're all basically the same just FYI.

Everyone has a "great index" or "extra features" but all of the big carriers work with the same economic/financial conditions.

Hot dot today is cold tomorrow.

You have one orange, just because you have extra glasses doesn't mean you get more juice.
 
If it has "downside protection" it's not a fixed indexed annuity. The carriers use all of this language interchangeably but an FIA inherently has no downside.

That sounds like a hybrid product that you need a securities license to sell (which almost no one on this forum has).

They're all basically the same just FYI.

Everyone has a "great index" or "extra features" but all of the big carriers work with the same economic/financial conditions.

Hot dot today is cold tomorrow.

You have one orange, just because you have extra glasses doesn't mean you get more juice.

Yup, likely a RILA variable annuity.

It may offer a floor or a buffer & client/advisor pick at what levels, if any it has a floor or a buffer. Better the floor or buffer, the more limited the upside.

If it has -10% buffer, it means the client gets credited 0 when losses 0-10%, but client takes all losses over -10%

Record sales of RILA the last few years as most Variable Annuities being sold today are RILA versions according to LIMRA numbers

It does look like Symetra does offer a RILA Variable Annuity. Index-linked annuity

Trek plus swift notes
 
Back
Top