EIA again

[ziggy29]

When you consider that you need a series 7 to sell a CD in a brokerage account, its criminal in my mind that you don't need to be registered to sell EIAs

There is a bit of an art to selling something as an investment without calling it an investment...

 

[saluki9]

There is risk in an EIA, no matter what an insurance agent tells you........get one of them to explain "crediting rates" or "participation rates" to you, and it will make the disclaimers at the end of car commercials easy to understand..........

I'd be less worried about crediting rates than I would be the financial condition of the types of companies that issue EIAs

 

[saluki9]

There is a bit of an art to selling something as an investment without calling it an investment...

There is also an art to buying the best lobbyists

 

[dgoldenz]

Then all NML agents should be fired, as they are told to tell clients to "think of the dividends on your WL policy as the FIXED INCOME portion of your portfolio".............they have been saying that for years.........

There is no reason an EIA can't have a shorter surrender than a VA, none except profit margin........

There is risk in an EIA, no matter what an insurance agent tells you........get one of them to explain "crediting rates" or "participation rates" to you, and it will make the disclaimers at the end of car commercials easy to understand..........

I don't know what NML tells their agents to do, so I can't comment on that. EIA's go as short as 5 years. Most people buying them do a 7 or 10 year. Crediting rates and participation rates are easy to explain. Like I said before, if it can't be explained in 10 minutes and understood in 30 minutes, move on to the next thing. KISS method wins every time.

 

[FinanceDude]

I don't know what NML tells their agents to do, so I can't comment on that. EIA's go as short as 5 years. Most people buying them do a 7 or 10 year. Crediting rates and participation rates are easy to explain. Like I said before, if it can't be explained in 10 minutes and understood in 30 minutes, move on to the next thing. KISS method wins every time.

Read Aviva's EIA contract once, and you'll know what I mean.........

 

[dgoldenz]

Read Aviva's EIA contract once, and you'll know what I mean.........

I've read one and even posted in another thread here (or earlier in this one) that it was 125 pages, which is ridiculous. An EIA contract shouldn't be more than 30-40 pages. I think the one we did for a client with RBC last year was around 20-25 pages, about the same length as a life insurance policy.

 

[brewer12345]

I'd be less worried about crediting rates than I would be the financial condition of the types of companies that issue EIAs

Give that man a cigar.

 

[73ss454]

How many years?

10

 

[kaneohe]

Thanks all for the comments. I've distilled my personal nuggets of gold that
I sifted from the tailings:
1) DIV yield not included in equity index but is in equity funds
2) Carrier risk
3) Consider time period analyzed (up or down markets)
4) Historical returns may not reflect new investments because
product terms/conditions different
5) Consider rolling your own (brewer)
6) Compare vs. CD (the KISS principle)
7) Be sure you understand features of specific product and
are not confusing those from different products....e.g.
guaranteed return valid only if annuitize, etc.
when signon bonus valid,

Since the pot seems to have calmed down, I thought I'd add this link that I
found by accident via google. Just for giggles, I googled the author's name, found a contact e-mail address and sent a message to Dr. Babbel asking if the results reflected his study. Today I got an e-mail reply confirming that they did. You can choose to believe or not whether this is a grand conspiracy.

http://www.annuitydigest.com/blog/t...exed-annuity-study-recent-historical-evidence

It's an interesting study. Critque appreciated.