Which VA's?
33 RepliesJump to last post
Which VA companies are you going to add or drop this year?
I wrote a decent amount with ING over 2008, but due to their product changes, I can't see why I would write them anymore. Prudential and JNL are both keeping their products the same, if not enhancing them. I've done a couple Pru contracts, did $250k today, and no JNL so far. I haven't really looked at many others, but know that Hartford, AXA, and Pac Life among others are toning down their features.TransAmerica hasn’t changed too much (should be going into effect sometime in January). On the GMWBs they’re downgrading joint-life payouts from 5/6/7% to 4.5/5.5/6.5%, but the overall cost has decreased by 15bp (now 75bp). (looks more like a pension plan now)
Single life, I think it’s a 15bp increase (75bp total) on the GMWB, but still the same 5/6/7 payout.
[quote=snaggletooth]Which VA companies are you going to add or drop this year?
I wrote a decent amount with ING over 2008, but due to their product changes, I can't see why I would write them anymore. Prudential and JNL are both keeping their products the same, if not enhancing them. I've done a couple Pru contracts, did $250k today, and no JNL so far. I haven't really looked at many others, but know that Hartford, AXA, and Pac Life among others are toning down their features.[/quote]If I do any VA's at all, it'll be JNL. I don't feel like learning another product.
[quote=Mike Damone]
I got a call from my JNL Internal that changes are coming 1-12-2009.
[/quote] I got a call too. The JNL guy said they are allowing withdrawals to start at 4% for age 45+. He said the 7% and quarterly lock-in will remain the same.[quote=snaggletooth]Which VA companies are you going to add or drop this year?
I wrote a decent amount with ING over 2008, but due to their product changes, I can't see why I would write them anymore. Prudential and JNL are both keeping their products the same, if not enhancing them. I've done a couple Pru contracts, did $250k today, and no JNL so far. I haven't really looked at many others, but know that Hartford, AXA, and Pac Life among others are toning down their features.[/quote] Hey Snaggle, Which Prudential product do you use?[quote=ChrisVarick]
Hey Snaggle, Which Prudential product do you use?[/quote] Apex II HD 7[quote=snaggletooth][quote=ChrisVarick]
Hey Snaggle, Which Prudential product do you use?[/quote] Apex II HD 7[/quote] Have you ever used their .35 bps GMAB (capital protector) rider? It SOUNDS really good, but I'm wondering if there's a catch. 5% dollar for dollar withdraws, annual step ups, principal protected every 10 years.What JNL rider is good for lifetime income? Lifegard Freedom? I was talking to the Nationwide rep and he was 'splaining this rider, seemed decent:
Guaranteed growth, up to 100% (you are guaranteed that your income benefit base will increase by 10% simple interest annually for 10 years, or until you take your first withdrawal, whichever is sooner; if you don't take withdrawals for 10 years, this is a guaranteed 100% increase)I’m thinking of campaigning with Allianz’s Target Date Retirement benefit.
It’s a seven-year product. They get to specify asset allocation and it gets more conservative as time goes on… however, at the end of the seven year time frame client can still be 70/30 equity/FI.
Here’s the kicker… over the seven year time frame, the client gets the highest anniversary date value… and its a WALK AWAY. No annuitization, no withdrawal benefit, no income benefit. They can just walk with the highest anniversary cash.
Very interesting. How much does it cost? In year 1 can I go 100% equity and they gradually reduce it by 5% a year until it hits 70/30? Or you're saying it CAN be 70/30 equity, but it CAN also be lower (up to their discretion). It sounds very good, but I honestly don't like VA companies that exercise investment control. They claim that it's for the client's benefits (we don't want you going too aggressive in a volatile market). Well with that said, when the market dropped -40% this year, these insurance companies allocated the account value into fixed income portfolios locking in the losses. I'm totally sure it's the the client's best interest and not for the insurance company's way to hedge against the massive step ups to the income/withdraw bases right?I’m thinking of campaigning with Allianz’s Target Date Retirement benefit.
It’s a seven-year product. They get to specify asset allocation and it gets more conservative as time goes on… however, at the end of the seven year time frame client can still be 70/30 equity/FI.
Here’s the kicker… over the seven year time frame, the client gets the highest anniversary date value… and its a WALK AWAY. No annuitization, no withdrawal benefit, no income benefit. They can just walk with the highest anniversary cash.
From what I understand so far you start out at around 90/10 and a certain percentage gets moved over to FI each year, but you get to choose which funds. They have a few balanced funds in their FI section that allows for more overall equity in the allocation. Winding up in the 7th year with still a 70/30 allocation. Not bad IMO.
Not sure on overall ME, but the rider is like 65bp I think. After this market, I think this rider is perfect for a “recovery plan” pitch.
[quote=Gordon Gekko]Sounds good for accumulating but not so much for drawing income right away.[/quote]
Yes definitely not for income now. But what about all of those folks that got decimated in mutual funds this year? I think this can really be a savior… assuming, of course, nothing bad goes with Allianz.
That's an oxymoronic statement.[quote=Gordon Gekko]Sounds good for accumulating but not so much for drawing income right away.[/quote]
Yes definitely not for income now. But what about all of those folks that got decimated in mutual funds this year? I think this can really be a savior… assuming, of course, nothing bad goes with Allianz.
I have found VA’s are only good for a select few clients. They cost the most, they are the hardest to understand, they have the longest lockups (I realize you can buy a no load) - I don’t think I’ll be doing as many going forward. That being said, I want to know what’s out there. I have heard of that Ohio National one.
That's an oxymoronic statement.[/quote][quote=etj4588] [quote=Gordon Gekko]Sounds good for accumulating but not so much for drawing income right away.[/quote]
Yes definitely not for income now. But what about all of those folks that got decimated in mutual funds this year? I think this can really be a savior… assuming, of course, nothing bad goes with Allianz.
How so? From what I understand, Allianz is one of the better insurance companies out there. Very little exposure to the sub-prime mess (less than 1/10 of 1%) and small exposure to credit derivatives.
Have I missed some news on Allianz?
[quote=Gordon Gekko]I have found VA’s are only good for a select few clients. They cost the most, they are the hardest to understand, they have the longest lockups (I realize you can buy a no load) - I don’t think I’ll be doing as many going forward. That being said, I want to know what’s out there. I have heard of that Ohio National one.[/quote]
Ohio National is a solid firm, I’ve used them before.
I agree that VAs are not for everyone, however, EVERY one of my VA clients is happy right now. None of my other clients are.
After 8 years of this game, I’m coming to realize that it’s not what you do in good times that counts, but how well you protect them in bad times. Yes, VAs can be tricky. Yes they can be expensive. But in the end, clients want you to protect them from loss… and living benefits can help.
not sure what allianz problems he/she is referring to, but i have stayed away from them due to their huge business in the equity indexed market.