15% bonus EIA

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Jun 26, 2007 12:32 pm

A client just called me about a 15% bonus EIA, I think from Allianz.  I'm not familiar with the product (I don't have an appointment with Allianz for fixed products, and I'm not a big fan of EIA's in general).


3 questions. 


1.  Can anyone give me a very short description of what this particular annuity is?


2.  Related question, different case.  What is the Dex 5 contract?


3.  This is a new client for me with about $25,000.  She has between $1mm and $2mm with someone else, mostly in recently bought EIA's.  I haven't seen the contracts, but I believe most have very high bonuses, which I assume is going to mean either very long surrender or forced annuitization.  I think she is relatively smart, but uneducated on financial products, and the guy she is working with is a very polished salesman (who only sells very high comm EIA's).  Anyone have advice on how to educate her without making her feel stupid?  I'm afraid if I talk about these products like I normally do, she will just shut down because she won't want to face the reality that she just put 95% of her net worth into a product that forces annuitization.


Special note for BH - I don't want to know why she did something smart to do the EIA, or how much better that salesman is than me (she had it when I met her).  I think from some of your posts you and I actually use the same VA from JNL quite a bit, so please don't lecture me like you would Allreit about how annuities are the be all end all.


Jun 26, 2007 12:35 pm

Show her this http://www.nasd.com/InvestorInformation/InvestorAlerts/Annui tiesandInsurance/Equity-IndexedAnnuities-AComplexChoice/inde x.htm?ssSourceNodeId=1108

Jun 26, 2007 1:03 pm

 

Endurance 15SM Annuity Overview



Success- a matter of endurance



The track to retirement can sometimes be long, with unexpected twists, turns, ups, and downs.  To help your clients maintain their perspective during this journey, they'll be well-served to have a strategy that can accommodate change and flexible enough to make those accommodations.



Allianz Endurance 15 Annuity can offer that kind of flexibility, providing your clients with the economic staying power necessary to remain on-course to and through their retirement years.



This new FIA offers exciting flexibility and growth features such as:




A 15% bonus and enhanced interest1

Up to 8% top GA Commissions

Monthly sum and annual point-to-point crediting methods

Seven indexing options including an international index

Endurance 15 offers your clients an accumulation potential and flexibility to help them to meet many of the challenges of life's changing times and circumstances.  With the flexible Allianz Endurance 15 Annuity:




Retirement income options include a lifetime income withdrawal that will never decrease

Provides the flexibility to meet unforeseen circumstances

Your clients have the ability to take their accumulation value as a whole after their 10th contract year (bonus not included)

Your clients' premiums and bonuses are protected from index losses

Your clients can receive 10% more indexed interest simply by utilizing one of the two Enhanced Partial Withdrawal payment options

Each year, your clients may receive indexed interest based on annual changes of one or more market indexes, subject to an annual cap

Any indexed interest is locked in once a year, eliminating risk due to market index losses

Safety


Allianz Life Insurance Company of North America is a member of the Allianz Group, one of the world's leading integrated financial services providers and the 16th largest corporation, based on revenue2.



When your clients begin putting together a blueprint for how they will retire, help them use the tool that will make the job easier.  Endurance 15 is flexible enough to meet the challenges of changing times and circumstances.



If you have any questions about the Allianz Endurance 15 Annuity, please call: 800-950-7372 for fixed annuity producers.



Please note: This product is not a direct investment in an index.



1 The bonus and enhanced interest apply to the Enhanced Withdrawal Benefit (EWB) value.  After 10 years, the EWB value may be accessed over a period as short as 10 years.  These are partial withdrawals and subject to ordinary income tax.



2 Fortune, July 2006

Jun 26, 2007 1:05 pm





Product availability and features may vary by state



Please note:  This product is not a direct investment in an index.



1  "FTSE", "FT-SE", and "Footsie" are trademarks jointly owned by the London Stock Exchange Plc and the Financial Times, and are used by the FTSE International Limited ("FTSE") under license.  The FTSE 100 is calculated by FTSE.  FTSE does not sponsor, endorse, or promote this product and is not in any way connected to it and does not accept any liability in relation to its issue, operation and trading.



2  "Standard & Poor’s®," "S&P®," "S&P 500®," "Standard & Poor’s 500," and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Allianz Life Insurance Company of North America. The product is not sponsored, endorsed, or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of purchasing the product.



3  Nasdaq-100®, Nasdaq-100 Index®, and Nasdaq® are trade or service marks of The Nasdaq Stock Market, Inc. (which with its affiliates are the Corporations) and are licensed for use by Allianz Life Insurance Company of North America.  The product(s) have not been passed on by the Corporations as to their legality or suitability.  The product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).


Jun 26, 2007 1:06 pm

Thanks!

Jun 26, 2007 1:08 pm
EDJ4now:

Thanks!


You're welcome. Let me know if I can help.

Jun 26, 2007 1:10 pm

I must be getting smarter, because you are being nicer.


Jun 26, 2007 1:13 pm
EDJ4now:

I must be getting smarter, because you are being nicer.




Sounds like you've got a good grasp on the relationship between nice and smart.

Jun 26, 2007 3:08 pm
EDJ4now:

I must be getting smarter, because you are being nicer.




That was funny.


This sounds like a newer version of the Allianz annuity that my profit sharing people have with Allianz.  10% bonus 5% liquidity, have to annuitize over 10 years to get the full/bonus value.  Again not a problem for their IRA accounts, perfectly acceptable, but for a pooled plan...NOT.

Jun 26, 2007 4:56 pm
Dust Bunny:

That was funny.


This sounds like a newer version of the Allianz annuity that my
profit sharing people have with Allianz.  10% bonus 5% liquidity,
have to annuitize over 10 years to get the full/bonus value. 
Again not a problem for their IRA accounts, perfectly acceptable, but
for a pooled plan...NOT.





Don't forget the 3% crediting rate.



How much are T-Bills paying these days?

Jun 26, 2007 5:11 pm
AllREIT:
Dust Bunny:

That was funny.


This sounds like a newer version of the Allianz annuity that my profit sharing people have with Allianz.  10% bonus 5% liquidity, have to annuitize over 10 years to get the full/bonus value.  Again not a problem for their IRA accounts, perfectly acceptable, but for a pooled plan...NOT.




Don't forget the 3% crediting rate.

How much are T-Bills paying these days?


Dumbf**k.