Lost a nice fee-based account today ($750K) to an "annuity" I was stunned. Whatever she's been sold has a 20%(!!!) "bonus". My assumption there is that the annuity has a ridiculous surrender schedule

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Also some piece of shit with an insurance license just made 75-90k in commission

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Shit like this makes us all look bad. I'm getting sick of being right and still losing the business.

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Actually it’s probably the top selling index annuity in the market. Allianz 222. It’s a 20% bonus to the benefit base. Catch to this product is client must wait 10 years before they can take income. Also aside from the 20% bonus there is no guaranteed rollup for the benefit base. It only rolls up by 1.5 times the index if market performs and is capped out. Not to throw any disrespect on an already difficult situation but an indexed annuity and a fee based account are polar opposites. Just from my experience sometimes you have to listen to clients and hear out their concerns. Just because a few based account may be best for them on paper doesn’t mean it is what they want if they are looking for peace of mind. It’s always important to lead with the story you think will be most effective but also be prepared with other options if you think the client has different wants and needs. No reason you can’t offer this client something more effective then the 222

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Not that I'm an annuity expert, but i have never seen a 20% bonus product.

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It was probably one of those things that gets advertised on a postcard of a cruise ship and junk mailed to anybody with an insurance license. Of course, the cruise is for the producer, not the client.

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Try your best to get her out within 30 day surrender. Anything with a bonus like that probably has a 15 year or more surrender and you only get the bonus if you annuitize

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Gotta love the Free Look and be able read the contract. Then set up a “friendly” confrontation appointment just to watch the other agent meltdown.

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None of the reputable EIA carries have bonus' this high so she is going to regret this investment til her death.

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I remember seeing an indexed Annuity that had a similar bonus. It had a 10 year vesting period but the agent selling it was telling my client that they had access to half of the bonus day one and the balance in year 2. Once I was able to show her that she was simply getting her principal back and in order to get the investment, growth and bonus she had to hold it for 10 years she became my most loyal client. It wasn’t easy to get her back in at first because she was a little embarrassed but in the she appreciated my effort. I wish you the best.

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It's probably a bonus on the "income benefit", not a premium bonus. I think the Allianz 222 does something like that.

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It could be the Allianz 222 product, but the bonus is only on the income value not walk away money.

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Ive seen a 20% bonus once. The client had a 15 or 20 year surrender. Also the bonus was only for the income bucket but my client did not need or want income. We ended up having to turn on the income because it was the lesser of two evils, but he wishes now he had never met that agent.

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It's why DOL came about ... sorry for your clients, sounds like they got the hammer.

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I second Cadaret Grants opinion. We only know half the story. What if she was looking for something with downside protection since that $750k is her only major investable asset? And the agent talked about peace of mind, talked about not needing to stress over market performance, and no fees? Then you sir got it all wrong. Don’t let some insurance punk eat your lunch, ask her what she likes about it and work with her on a solution.

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Still time to save it with 30 day free look. But you should set the expectation with clients that if they are considering making changes like that to meet with you first, out of respect for you and concern for them so they avoid shit like this. And tell them if the changes they want to make are truly better for them that you'll honor that and even help them with the transition. But ya that blows. Probably some shitty indexed product

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These products should be illegal

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Most likely has a 20 year CDSC. First five years has a CDSC charge of 20%. I️ thought these crooked products were no longer around. Poor lady is getting screwed.

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Ameriprise 1 it’s not quite that but it’s a 10 year surrender. I’m not a fan of the product myself but it’s not one of those shady EIA companies. For the right client believe it or not this product can work. I️ts easy to become complacent when the market has gone almost straight up for 9 years but let’s not forget majority of clients greatest fear is running out of money and they have not forgotten about 2008 as quickly as most of us in here

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Its an income bonus which is a bullshit gimmick product unless you live to 120 years old. I would do your best to make her see this too.

Probably the most expensive decision they've made in their lives. Think about that. All those times should I get the slightly nicer car? Should I splurge on that nice dinner out? Should I take that trip? None of that stuff matters at all compared to this. Just a reminder of how easy it is to fuck it up.

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