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 Posted: Mon Jan 04, 2010 6:52 am Post subject: Selling life insurance under global recession |
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I'm currently studying for my health and life insurance licensing exams. At the same time, I'm curious to know if the economic recession has affected your performance as a life insurance agent.
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Pedro~dominique
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| Posted: Mon Jan 04, 2010 1:02 pm Post subject: |
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People still have loved ones to protect.
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Guest 1
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| Posted: Mon Jan 04, 2010 6:31 pm Post subject: |
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The ecomony has effected individuals available spending income, so for those who want to buy life insurance for their "loved ones", they still have to pay the bills and keep food on the table. So if I were to get into the business brand new, life insurance would not be the product of choice. Personally I would be selling annuities right now people are looking for safety and fixed indexed annuity sales are booming right now. Do not go captive and brush up on annuities. Buy yourself some leads and go for it. An annuity sale will pay anywhere from 3% to 10%. If you were to write just 100k per month (which is not much) you would make 3-10k per month.
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Guest 1
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| Posted: Mon Jan 04, 2010 10:59 pm Post subject: |
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| No matter what you want to do I can find you an excuse not to do it. The economy prevents some life insurance sales, but certainly not all. If anything, this market correction will shed new light on getting back to using the savings strategies employed by our grandparents. I'm not knocking the securities industry, I think it definitely has it's place. I also believe people who buy equities under the impression that they'll get an 8+ percent return until retirement are headed into a world of cat food and income sensitive housing. |
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BNTRS
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| Posted: Tue Jan 05, 2010 12:33 am Post subject: |
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Aviva's BPA product is an indexed annuity that guarantees an 8% return for the length of the contract and if the individual dies they get the higher of the indexed account or the 8% side, which ever is higher. The only draw back is if the annuitant dies the beneficiaries have to take the 8% account over a 5 year period. Alot of seniors like the idea that their kids can not get to 100% of the money immediately. BNTRS you have no faith in FIA's?
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Guest 1
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| Posted: Tue Jan 05, 2010 3:21 am Post subject: |
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| I see no such product on Aviva's web site, but if you'd like to point it out by name I'd appreciate it. |
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BNTRS
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| Posted: Tue Jan 05, 2010 6:02 am Post subject: |
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| If you're a salesman and you're good at it then selling life insurance can't be any different than any other product. Whatever be the product that you're selling, it could be difficult while the recession is on. Selling anything else won't be easier than this one, if you're not trying out your best. Remain persistent and make the very best of all the opportunities that come your way. |
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steven
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| Posted: Tue Jan 05, 2010 1:46 pm Post subject: |
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It is called Aviva's BPA Select Annuity. 611 5th Avenue Des Moines, IA 50309 1-888-252-5530
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Guest 1
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| Posted: Wed Jan 06, 2010 5:49 am Post subject: |
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Guys, the challenge lies with the fact that under a recession the people are concerned about cutting down their costs. Selling insurance under such circumstances would require them to spend more. So, here lies your challenge in showing them how to reduce their expenses and helping them identify ways to save money.
A good agent would probably concentrate on how they can solve the immediate problems faced by their prospective clients. You could be a good insurance adviser, but when it comes under a recession you might as well need to play the role of a financial adviser. |
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roddick
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| Posted: Wed Jan 06, 2010 2:35 pm Post subject: |
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I just farted!
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Guest 1
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| Posted: Wed Jan 06, 2010 2:40 pm Post subject: |
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| Quote: | | It is called Aviva's BPA Select Annuity. 611 5th Avenue Des Moines, IA 50309 1-888-252-5530 |
So I go to Aviva's web site, for the U.S. and look up indexed annuities and find a comparison table.
There are four columns:
- Column 1: MultiChoice Income with 5, 7, and 10 year options
- Column 2: MultiChoice Income Elite
- Column 3: MultiChoice Income Plus
- Column 4: MultiChoice Income Extra
All have guaranteed rates 1% per year. The last two are bonus products for premium.
I see no BPA product that has the features you've described. Please provide further details. |
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BNTRS
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| Posted: Wed Jan 06, 2010 3:52 pm Post subject: |
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The post from the other Guest 1 is the exact problem with Indexed annuities. They are good products when sold appropriately, but sometimes the sellers aren't completely upfront with all of the facts.
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Guest 1
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| Posted: Wed Jan 06, 2010 4:25 pm Post subject: |
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bayshoreannuity.com/BPA.pdf
Do I have to hold your hand when you pee too? Just like all the other posts you make BNTRS they are narrow minded and without merit. Indexed annuities are great products. I just hate when guys who sell securities bash the guys who sell indexed annuities. At least with an indexed annuity the client doesn't have to worry about losing their money. How can you look your client in the face and say to them oops I lost your money. You or anyone else in this forum, are not smart enough to predict what the market is going to do. Therefore, an indexed annuity is a perfect product for individuals who want to participate in the market gains without the risk. The ONLY reason you don't like indexed products is because so much money is going into them. I agree that the agent needs to know his or her product and represent it with 100% honest and integrity, but for a registered representative to bash the product is just negligent. There is a reason why so much money is being invested into these products, its because the consumers out there are sick and tired of losing money in the market. There is too much fraud and misreprestation going on with securities. At least with a fixed product the client knows exactly how much it will cost him or her if they want or need to get out of the product. Because of market risk with other investments, indexed or fixed annuities (not including C.D's.) are the only investment that the indivduals knows upfront how much it will cost.
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Guest 1
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| Posted: Thu Jan 07, 2010 1:37 am Post subject: |
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Well, I guess you told me.
I read the borchure, I see no mention of anything guaranteed at 8%--maybe I missed it. I saw a guarantee to increase premium to 114% after 12 years, that's 1.1% annualized.
I saw something that I found very interesting in the Excess Interest Guarantee paragraph. If I'm reading this thing correct, the interest credited during the first 12 years (the surrender period) is the guaranteed rate. Gains received by the indexed side of this doing it's job are not "locked in" until after surrender is over. Does this mean the indexing interest--effectively 50% of the S&P plus AVIVA's declared rate--I get has to beat the guaranteed rate after the first 12 years or else I just get the guarantee? This seems terrible to me. I know Aviva is notorious for strange waiting periods--or should I say "indexing strategies"--but this would be by far the worst I ever seen.
The bonus piece is fascinating. That's the longest recapture period I ever seen on a bonus product. In fact I never seen a fixed bonus product that had a recapture fee, excuse me "vesting schedule." AND it costs money? They charge an annual percentage for a bonus that is also subject to recapture? I don't need you to help me pee, I need to you help me find someone. Not someone dumb enough to buy this thing. No, my friend I need to help me find someone dumb enough to sell it.
Now, you charge me with negligence for bashing indexed annuities. You say:
| Quote: | | At least with a fixed product the client knows exactly how much it will cost him or her if they want or need to get out of the product. |
Really? Perhaps you should go back and reread that MVA part. The part that says oh yeah, in addition to a surrender charge, there may also be this other fee you have to pay which takes a page to explain the process of figuring out. Tell me, if I had $250,000 in this annuity right now with 8 years left before surrender, what would my MVA be I wanted to surrender it as of last Wednesday?
| Quote: | | There is too much fraud and misreprestation going on with securities. |
Right, and the indexed annuity industry has been just peachy. Both have their fair share of problems and disingenuity. Quite with the sensationalist fodder about people sick of losing money and all that other BS.
| Quote: | | At least with an indexed annuity the client doesn't have to worry about losing their money. |
The minimum guarantee made on this product is 1.1% annual return over a 12 year period. What do we know the historical average rate of inflation to be? If you don't know I'll go visit the bathroom--no worries I don't need you to join me--and you can look it up.
| Quote: | | How can you look your client in the face and say to them oops I lost your money. |
Never done it; I've never had to. I didn't lose anything. They made a choice, it involved risks, they signed off on all those risks. I merely provide guidance and answer questions until they decide what they want to do.
| Quote: | | Because of market risk with other investments, indexed or fixed annuities (not including C.D's.) are the only investment that the indivduals knows upfront how much it will cost. |
Again, the MVA thing sort of flies against you here.
| Quote: | | You or anyone else in this forum, are not smart enough to predict what the market is going to do. |
Here's something on which I agree with you. However, "BPA provides you with the ability to track your values daily and the ability to lock lock in and protect your interest at any time." If I don't know where the market is going, you don't know where the market is going, and our clients surely don't know where it's going, why on earth do they bother with this? How do you look your client in the eye and say, "Oops, I lost you money by locking in too soon, too late, too whatever?"
Now let me share something with you that you might find shocking. 
I place a boat load of fixed annuity business. I hate stocks and own very few personally--less than 1% and at my age most would tell me I could own more than I do.
I love bonds, fixed annuities, and whole life insurance.
This all being said, I completely understand that strategy (by which I mean plan not length of time it's going to take before the credit from the index actually gets credited to an account) behind buying stocks, or equity backed mutual funds.
My recommendations remains grounded in lower risk, kind of slow and steady wins the race sort of stuff. I also don't believe that increasing risk exposure is an answer to someone's retirement woes. I know a ton about interest rates, and lot about valuation of securities. I've got probably a small text book worth of statistics that show me risk vs. return is not a linear function where risk is the independent veriable and return the dependent. In fact even during the boom market of the 80's and 90's it was less true that high risk equaled high return.
Here's my issue, and I'm even willing to give indexed annuities a 5th chance if you can convince me. The products are designed to look attactive, and that's about it. The mechanics behind what are actually going on are barely understood by the agents who sell them let's not even mention the clients who buy them. Agents selling them have a rudementary understanding of the stock market and the securities industry at best. How on earth can it follow that they are able to understand how the indexed annuity works? It's not nearly as simple as when the market goes up, your crediting rate goes up. I'd sooner get the maximum mandatory short term disability benefit from the state of CA than get the maximum, or anything close to the illustrated values of an indexed annuity.
Tell me this? How does Aviva make money on this thing? Seriously what do they do with the money they get from the client? And how does that translate into an ability to guarantee a rate of return?
I love guarantees, the higher the better, that's why I hate indexed annuities. Change me, I'm all open to enlightment. [/quote][/i] |
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BNTRS
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| Posted: Thu Jan 07, 2010 5:35 am Post subject: |
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| Quote: | | I merely provide guidance and answer questions until they decide what they want to do. |
That's what a responsible agent has to do under all circumstances. A good agent has to help the prospective client know the unforeseen risks. Once the agent performs his tasks, then it's up to the client to take his decisions. The agent can't take decisions and so the fall out of a bad decision has to be owned by the client himself.
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anonymous12
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