Annuity liquidation problems anyone?

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Nov 14, 2007 12:08 am

I haven't had many problems with the major annuity companies lately when liquidating (AXA, Jackson National, American Skandia), but I've been having some serious problems with a few of the lower tier companies.  It took me (mostly my assistants) 3 months before Bankers Life cut me a check.  It's been over 2 months and Presidential Life and Kemper still won't cut the check.  Anyone else noticing these chop shop annuity companies not letting loose of the funds?

Nov 14, 2007 11:59 am

Lincoln Benefit Life and Banker's life have both given me difficulty recently, not much trouble with the big ones.  I spent almost 2 hours on the phone a while back with Bankers, all but a few minutes on hold.  Suffice it to say, they are not my favorite place. 

 
It does help solidify the sale when you can write your cell number on your business card and tell the prospect that in the future if they have issues they can call you personally, not some disinterested college student in New Jersey.
Nov 14, 2007 10:20 pm

Same here the smaller less reputable companies do everything they can to keep the money, delay delay delay! I have had some companies even call the client and ask what I was offering and offer to beat it lol. Not the broker...the company!

Nov 15, 2007 11:36 am
nestegg:

Same here the smaller less reputable companies do everything they can to keep the money, delay delay delay! I have had some companies even call the client and ask what I was offering and offer to beat it lol. Not the broker...the company!

 
Lincoln Benefit Life does that all of the time, even if you are the broker of record (smaller company but very active here so I run up against them all of the time).  It makes me hesitant to give them any business when I know they have the knife ready for my back if I ever try to move the money.
 
I always tell clients to remember that the losing company was happy to pay them 3% (or whatever) until I came along to force their hand, so don't reward the company that has been taking advantage of you.  I have the same conversation on life insurance.  Generally the client is upset enough with the losing company that they could be offered 10% and they would still do the transfer.