My client would love to put all of his money (approximately $600,000) into a fixed indexed annuity but the underwriter for the Insurance company is saying that anything above 60% is unsuitable. Does anyone know of any companies that don't have this restriction? Thank you in advance. Frank
Why is the insurance company putting a limit on my annuity purchase.
- Thread starter fmonte555
- Start date
- 11,271
Why don't you split it up? Use a FIA for growth (no rider) and split a portion to a SPIA for income?
In essence, it generally is NOT suitable to put 100% of someone's money into A single annuity product. It's not about the product or the company, but perhaps your overall strategy and recommendation.
In essence, it generally is NOT suitable to put 100% of someone's money into A single annuity product. It's not about the product or the company, but perhaps your overall strategy and recommendation.
- 16,877
They want them to have a large portion of the money to be liquid. No company is going to let you put 100% in annuities with a surrender charge. Even if you split it between several annuities.
- 4,132
Because while you see a sale, they see a lawsuit.
- 15,041
And this is why we now have to have annuity specific CE...
- 5,778
You need to better investigate laddering of the monies available for use...
SPWL might also be an option for pass along funds to family... no taxes due for the most part (great way to preserve the estate)... only a part of an overall plan.
I would look at long and short term annuities and possibly a portion in an immediate... this is base on just the face of your question... not specifics
- 4,550
And Elder Abuse task forces in some states aimed at insurance & financial reps
- 15,041
I'm surprised the company would even allow 60% in an annuity. Granted, I don't really do annuities so maybe that is normal, but even that seems aggressive in today's regulatory environment.
I'll be frank, I actually think people should be able to lock up the vast majority of their wealth in "safe" vehicles if they want. Keeps them from blowing it otherwise. But I can also read the regulatory winds and know that is asking for trouble. Also, who defines what is safe?
- 11,271
I'm still looking for the "hard and fast rules" that so many claim are out there.
I re-reviewed the Annuity Suitability training from ANICO the other day because of this thread... and I didn't find ANYTHING that said "you are limited to putting 60% of your retirement assets in our product". It DID talk about liquidity for emergencies needs to be factored into the suitability check, but no "hard and fast rule". I don't recall seeing it from other carriers either.
Product Specific Annuity Suitability Training
I think that any and every agent that wants to sell annuities should purchase this book so you can have a far better sense of proper suitability and how to stay out of trouble.
Amazon product ASIN B073D8JTYX
I re-reviewed the Annuity Suitability training from ANICO the other day because of this thread... and I didn't find ANYTHING that said "you are limited to putting 60% of your retirement assets in our product". It DID talk about liquidity for emergencies needs to be factored into the suitability check, but no "hard and fast rule". I don't recall seeing it from other carriers either.
Product Specific Annuity Suitability Training
I think that any and every agent that wants to sell annuities should purchase this book so you can have a far better sense of proper suitability and how to stay out of trouble.
Amazon product ASIN B073D8JTYX
Does the name Glenn Neasham ring a bell? If not, do a search and you'll quickly learn why this might not be such a good idea.
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