Merrill Lynch Payout on Annuity & Life Insurance: Please Help!
Help: Annuity & Insurance Payout
Hi, I am about to start the PMDP program. I had worked for a Insurance based financial services company, and I am bringing a client who needs a minimum of 1 million immediate annuity. I need to know what the PC would be on this product with the following assumptions: A MetLife 1 million SPIA pays 4% gross dealer concession (that would be $40,000 GDC). Does anyone know the approximate PC for this case? I also have the same question for life insurance. Does Merrill pay the same payout (47% for new trainees) for annuities and life insurance?
Thank you for your help!
I can't tell you what the PC payout would be on an immediate annuity, sorry.
For the 2nd question, yes, ML will payout 47% (grid for trainees) of the PCs regardless of product type. However, there is often a significant haircut in insurance products BEFORE they hit the grid. For example, an L share annuity might pay 2.5% upfront with a 80bps trail at ML (recently changed, can't remember the specifics), while at an independant BD it might pay 4% upfront with a 1% trail. On the B share, ML pays 4.5% with a 25bps trail. Independantly, you will find in the 5.75-6% range with a 25bps trail. On a 1mil B share ticket, that is the difference between a 54k payday (60k * 90% grid)and a 18k payday (45k * 40% grid). And quite honestly, that is the primary reason I left.
Sorry for the tangent. Point is, the payout might not be what you are used to in your previous channel. Hope that helps.
Well in the pmdp program you will be eligible for the monthly bonus with that. I want to say I looked at the payouts on our immediates and it's either 4% or 3.2% not entirely sure. But here is how you can figure out what your monthly bonus would be if it is 4% : 40,000 PCs *.47= 18,800 - 1/3 of Quarterly Bonus - Monthly salary = Monthly bonus. I just switched over to Merrill from Jones so I made sure to go over the the payout and bonus structure a few times, but yea its a bit confusing.