Tripler Benefit
Presented by Deb Strong We all have clients that will need additional income now or who can wait a little later. One thing we might hear from our clients is that they do not want to pay a fee for having this option available to them. We have a rider that can offer your client a 5% rollup for up to 20 years while they wait to turn on income. This rider also has a Tripler Benefit. If your client goes into a qualified care facility, it will “triple” the income for 5 years!! I know in the state of California it’s hard to find these options approved for sale, but this one is approved. Please call Deb Strong at Financial Brokerage today at 800-397-9999 and ask for details.
Fixed Index Annuities: Sales growing, products evolving!
Presented by Richard Mangiameli For the first time, FIAs accounted for more than 50% of the market share for all annuity sales! Not only did sales reach over $48 billion in 2014, they are also gaining popularity in the “Broker-Dealer” channel. FIAs totaled 10% of the total broker-dealer annuity sales in 2014, and broker-dealers expect that share to grow. There are many financial planners who think that Fixed Index Annuities are the worst – too complicated and too many moving parts. It’s important that they take a closer look. FIAs are not complicated and there are not too many moving parts, and with the growth FIAs are having, they are not the worst things out there for your clients. FIAs just celebrated 20 years in the business, and they are here to stay. It would greatly help your business and your clients for you to learn and understand Fixed Index Annuities. Here is how you can learn more – call an Independent Marketing Office (IMO) such as Financial Brokerage, who has been in the market for over two decades and works with several insurance companies who offer FIAs, and will give you a non-bias opinion. Read this article for more information: http://www.lifehealthpro.com/2015/07/23/fixed-index-annuities-sales-growing-products-evolv?eNL=55b2baff150ba06858c48520&utm_source=LHPro_Daily&utm_medium=EMC-Email_editorial&utm_campaign=07272015&_LID=98077815
Oops . . . forgot to waive 6.3 million…
Presented by David Corwin As we go further down the road in the financial services industry, which insurance only agents also find themselves classified in, I’ve been seeing some drastic differences. Even though, over an extended period of time, the differences seem to become harder to see. In a recent article, I read that FINRA (Financial Industry Regulatory Authority Inc.), fined a broker/dealer for not waiving as much as 6.3 million dollars in sales loads for certain mutual fund shares, and other firms getting fined for similar offenses. Another example is a broker/dealer who was ordered to pay 11.7 million in fines and restitution for what it deemed “widespread supervisory failures” related to sales of certain complex products including variable annuities. I speak with agents all the time, that happen to be neck deep in securities, and they ask my professional opinion on Equity indexed annuities so that they can understand and compare the differences. After the long discussion that I have explaining the main features and benefits of owning such a vehicle, they usually say “that’s way too complicated” and “how on earth could I sell such a product to anyone.” My typical response to that is asking them to explain the mortality and expense charges on variable annuity contracts, or explain why the fees on one of the myriad of sub accounts in the same asset class is drastically different than others. I go on to ask if they’ve read and understand the 569 page prospectus that they are to leave with the consumer after discussing, and ultimately selling, a variable annuity. The response sometimes, if not most of the time, is usually that I’ve made a good point and for me to send them more information. If you’re reading this blog as a securities representative or an insurance only representative, you have to understand all annuities if you’re going to truly offer what the client desires to have.