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The Best FIAs IMOs Won’t Tell You About
Anyone who’s been reading my newsletters for any amount of time will know I’m not a fan of most (almost all) IMOs in the industry. Why? Because they put their interests ahead of the agents, and certainly ahead of the end consumer who buys products.
Why don’t/won’t IMOs tell you about the products alluded to in this newsletter?
1) They make 50% less in overrides.
2) There are only a select few IMOs (less than 10) that have access to these FIAs.
The bi-product of 1) and 2) above is that the vast majority of agents in the industry are unaware of the FIA I’ll be discussing in this newsletter.
What makes a good FIA?
1) High caps (annual point-to-point, monthly, etc.)
2) High participation rates on no cap products
3) High roll up rate on guaranteed income products
4) High payment bands in the income phase on a guaranteed income product
5) A- or better rated carrier
6) Lowest possible surrender charge scale
7) Return of premium option
8) Trail fee commission option (1% annually is a great trail)
9) Awesome “compliant” marketing pieces to help sell these products
10) Competitive compensation to agents-I put this as a stand-alone because the agents will like that they get paid well, but again, IMOs make 50% less than other products which is why most agents have never heard of it.
11) Flexible premiums-I’ve put his one as a stand-alone at the bottom to highlight it. Most FIAs do NOT offer flexible premiums. Most FIAs are single premium products. This best product you’ve never heard about is a flexible premium for the life of the product (commissionable in years 2-5 except trail commission which are paid for the life of the product).
What other unique features are good on an FIA?
1) Return of fees for the income rider if the client dies before turning on the rider
2) Hybrid crediting strategy designed to return more than an S&P point-to-point product
No product can be the best at everything….but….
The truth is that no one product can be the best product in every single aspect in the list above.
However, there is a “best” product that has the best of some of the above and is very competitive at the other items listed. That’s how I would categorize the product line I’m talking about in this newsletter. The product line I’m discussing shows up at or near the top in almost every category listed above.
But there are also some uniqueness aspects to the annuity line that other products do not have.
If you want to make sure you are offering the best products to your clients, you need to learn about the products I’m alluding to in this newsletter that IMOs won’t tell you about.
Roccy DeFrancesco, JD
Strategic Marketing Partners