Big differences in the products they sell! Anyone know why??

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PostPosted: Mon May 25, 2009 5:31 am   Post subject: Big differences in the products they sell! Anyone know why??  

WIth regards to life annuity products...



captive agents sell 3 times more variable annuities than independent agents (PPGAs- This includes brokers hired under PPGAs).



However with regards to life insurance products PPGAs(This includes brokers hired under PPGAs) sell more VL and VUL products than captives.



Variable annuities, VUL and VL are all investment-type products (linked to the financial markets).



Therefor my question is:



Why do captives sell so much variable annuities... and PPGAs(This includes brokers hired under PPGAs) sell so much(approx. 80% more in earned commission) VUL and VL?


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PostPosted: Mon May 25, 2009 6:54 am   Post subject: Also  

Are annuities sold by agenst and brokers at home? I heard that over 75% of all products sold at home are life insurance products.

darnardo1
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PostPosted: Mon May 25, 2009 7:58 pm   Post subject:   

Look at some of the captive companies who sell a lot of life insurance. Some of the names that come to mind are Mass Mutual, New York Life, Guardian, Northwestern Mutual. These are all mutual companies. The agents of these companies sell little to no VUL. They sell term and whole life.

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PostPosted: Tue May 26, 2009 4:42 am   Post subject:   

Good Point Insurance Expert,



thanks for the reply

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PostPosted: Tue May 26, 2009 10:30 am   Post subject:   

Hi Guest,



I guess you already have a clue to the answer. Captive agents work to meet the over all profitability of their organization. That's probably the reason why they'd need to sale more of variable annuities that the carriers come up with. But do you mean to say that the PPGAs earn 80% more in comm. by selling VUL and VL?



Steven

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PostPosted: Wed May 27, 2009 12:40 am   Post subject:   

Sorry, I made a mistake VL sales by brokers and independent agents for 2008 (LIMRA) was only $68,000 compared wth $7,893,000 for captives in planned recurring premiums.



however VUL sales for captives was only $140,169,000 compared to $244,141,000 for PPGAs and brokers.

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