Yep, the customer would >sure< have to know in advance. If Susie is counting on the insurance salesman to discourage her from annuitizing every cent she's got, then she may be in for a shock.
Again ..I don't sell annuities so I may be wrong on this but I believe the insurance agent has to fill out a form that shows how many assets Susie has, The insurance company could reject if the annuity is too large of a portion of her asset. Again I may be wrong on this
The insurance agent has the incentive to sell more annuities. But like every business in America .. there is the disincentive of being too aggressive. When I go to Best Buy to buy a Kitchen Aid appliance .. and the salesperson tries to sell me a Thermador package, I'll take everything he says about Kitchen Aid with a grain of salt. In my opinion ..it's good to know what the incentive is. Unlike an advisor who tells you they don't have a conflict of interest... yet while you're trying to figure out if your withdrawal should be 3 or 4% . they take an extra 1%. This is what they call a fiduciary.. lol.. and of course they will tell you that it's better to keep the money in the market than pay down your house.. but they don't have a conflict of interest . They def don't want you to buy annuities.. because that lowers their "fee" ...which works just like a commission. But they are "fiduciaries"
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