Eagle Guarantee Focus 3 - 10% Withdrawal Options

[jpjr]

I am looking for anyone who has looked into or knows anything about Eagle Guarantee Focus 3 "Annuity". My sister has been sold this product and I cannot help decipher it as they took her money, gave her 30 days to change her mind, but did not actually provide a copy of the policy (or even a facimilie of a policy). Guarantee 2.1% interest for the 3 years in force. I read the "customer relationship" summary for Cetera Investment Services, and it provides 50 plus pages of absolute nonsense. I am of the mind that no "annuity" - especially some short term product is anything but a money maker for the bank and the broker, but if anyone has run into this product I would appreciate your input.

Thanks

 

[rodi]

Questions for your sister to ask:

What is the surrender cost?
What are the purchase fees/loads/costs?
Is the principal guaranteed at the end of the 3 years?

If the answer to any of those questions isn't what she's expecting she should look at a CD instead.

 

[OldShooter]

Eagle Life AM Best rating is A-.

Here is a clip from another thread -- @pb4uski, our resident insurance finance guru, opining on ratings:

I personally think that there is little credit risk with most MYGAs from well-rated insurers given regulatory constraints and risk-based capital requirements.... especially over a short 5 year term. While I personally would probably be ok with A or better, as a fiduciary I'd probably shoot for A+ or better.

If you're comparing to CDs that have no credit risk, then only A++.

(He has a ratings chart there, too, but it didn't come through when I copied is post. Thread is https://www.early-retirement.org/forums/f28/ridiculous-cd-rates-where-now-105555-8.html and it's post #158.)

 

[jazz4cash]

I would be more concerned with the behavior of the broker (Cetera Investment Services?) e.g. no prospectus/policy than the Insurance company offering the product. We are seeing increasing interest on this forum for these types of investments as CD rates keep dropping. Three sites that have a lot of information on MYGAs (Multi Year Guaranteed Annuity) is Blueprint Income, immediateannuities.com, and Stan the Annuity Man. You can find many examples there to compare to what your sister purchased. You did not mention exactly what the 10% withdrawal option, but it is a feature that many but not all MYGAs offer. I think I would exercise the 30 day free look and get away from Cetera and find someone else to broker the MYGA. Blueprint income has 3 yr A- rated MYGAs in the 2.2-2.4% range with a withdrawal feature.

Here is a brochure for this product:
https://media.eagle-lifeco.com/Documents/09SB3644 09.08.20.pdf

 

[jpjr]

Thank you all for taking the time to respond. Enough info to continue to analyze the product and some good suggestions to research.

 

[jollystomper]

I cannot help decipher it as they took her money, gave her 30 days to change her mind, but did not actually provide a copy of the policy (or even a facimilie of a policy).

For this reason alone, regardless of their rating, I would not waste my time on research and instead would run away screaming into the night. Anyone who promises something but does not provide, or makes it hard for you to find, the details of the policy, is not a company I would trust.

 

[pb4uski]

+1

 

[jazz4cash]

For this reason alone, regardless of their rating, I would not waste my time on research and instead would run away screaming into the night. Anyone who promises something but does not provide, or makes it hard for you to find, the details of the policy, is not a company I would trust.

Yes but I think this conflates the Insurance company offering the product with the broker selling the product. I agree about running away screaming from this broker but the rating is for Eagle Insurance Company and I still might consider buying their products from a more reliable broker. I have no idea what happens after you hand over your money. Does the broker service the account or does the Insurance Co take over? It’s important for me to be comfortable with the entity that takes my money even if they are not ultimately managing the funds.

 

[The Cosmic Avenger]

For this reason alone, regardless of their rating, I would not waste my time on research and instead would run away screaming into the night. Anyone who promises something but does not provide, or makes it hard for you to find, the details of the policy, is not a company I would trust.

Definitely cancel this contract with this broker, since they didn't even provide the brochure to which jazz4cash linked. I'm not crazy about this product, but as someone else said, it might make a decent replacement for CDs if the buyer is OK with slightly higher risk for a slightly higher return.

 

[stephenson]

So, here is what I told my mother when she was set upon by the annuity sales team.

“No.”

She desperately pointed out that it was a great product. I said, “No.”

I asked her why it was great - she didn’t know, but keep repeating how much she needed an annuity.

“No.”

 

[jazz4cash]

Not all annuities are created equal. If someone is pushing an annuity it’s likely it was not one of these MYGAs. The blueprint income site shows commissions for some of these are in the 2-3% range but I don’t assume that is the total compensation for brokering these contracts.

 

[pb4uski]

So, here is what I told my mother when she was set upon by the annuity sales team.

“No.”

She desperately pointed out that it was a great product. I said, “No.”

I asked her why it was great - she didn’t know, but keep repeating how much she needed an annuity.

“No.”

My mother just says to any annuity sales person.. "You need to talk with pb4uski, my financial advisor"... then I tel them "no".