Allianz Commissions Rates

[JoeAnnuity]

Hi,

I remember hearing a couple of months ago that Allianz was going to drop their street commissions by 50 basis points on annuities. Did this in fact happen? I haven't heard anything else.

Thanks

 

[TwiLight]

Yep.... Jan 6, 2015...

It was an across the board cut from IMO/FMO to the Agent.

 

[SanDiego619]

Yep.... Jan 6, 2015...

It was an across the board cut from IMO/FMO to the Agent.

To be more specific. It was on all of their 10 year products.

CI7 and Sig 7 were not effected.

Bonus comp structure not effected

 

[jacobtn]

does anyone even sell their products any more anyway? can't see where they have any value.

 

[SanDiego619]

does anyone even sell their products any more anyway? can't see where they have any value.

Um. They did 12 Billion last year. So yeah, I believe people still sell them.

If you're asking about this year they told Germany they're gonna do about 8. So they're scaling things back a little bit, but believe me, either way the answer to your question is yes

 

[scagnt83]

The only thing they are competitive on at all is income. Considering that rates are at a historical low... it is EXTREMELY hard to imagine that there were not better options out there.

Way too many agents sell whatever their IMO pushes. And we all know that Allianz is pushed big time by IMOs. If they werent, then I seriously doubt they would even do $1B.

2% Caps, 5% Spreads.... in the words of my favorite LTCI poster, gimmie-a-break. For accumulation they are not even in the league, much less a player.

For income sure. But I think a lot of agents are doing a huge disservice to clients by locking in historically low rates for life using income riders right now...

 

[TwiLight]

I think a lot of agents are doing a huge disservice to clients by locking in historically low rates for life using income riders right now...

Exactly.... The biggest Scam Ever.... Designed to push Sales only and never designed for the consumers best interest.

Especially when only 20% of Annuities ever exercise a settlement option.

IMHO

Skipper

 

[pfg1]

The only thing they are competitive on at all is income. Considering that rates are at a historical low... it is EXTREMELY hard to imagine that there were not better options out there.

Way too many agents sell whatever their IMO pushes. And we all know that Allianz is pushed big time by IMOs. If they werent, then I seriously doubt they would even do $1B.

2% Caps, 5% Spreads.... in the words of my favorite LTCI poster, gimmie-a-break. For accumulation they are not even in the league, much less a player.

For income sure. But I think a lot of agents are doing a huge disservice to clients by locking in historically low rates for life using income riders right now...

SC, what about Allianz 222? They have have the better bonus crediting still on that, and with the Barclays index there is some decent potential growth.

A buddy of mine likes that product for accumulation (even though its been trimmed down some too, like the other products) and many his clients have done well on it this past year or two.

For accumulation who do you suggest? 10yr product, no fees, good penalty free withdrawal options?

 

[SanDiego619]

SC, what about Allianz 222? They have have the better bonus crediting still on that, and with the Barclays index there is some decent potential growth.

A buddy of mine likes that product for accumulation (even though its been trimmed down some too, like the other products) and many his clients have done well on it this past year or two.

For accumulation who do you suggest? 10yr product, no fees, good penalty free withdrawal options?

Like someone just said in another thread. Choice 10 from AEI. 50% par on S&P. annual pt to pt

 

[scagnt83]

SC, what about Allianz 222? They have have the better bonus crediting still on that, and with the Barclays index there is some decent potential growth.

A buddy of mine likes that product for accumulation (even though its been trimmed down some too, like the other products) and many his clients have done well on it this past year or two.

Question: What do you think the 222 will average for your clients?

Maybe someone will want to provide us with an illustration showing the low/mid/high.

But on an old 360 illustration, with a 3% Spread & a 50% Bonus on gains, you were looking at 2%-8%, with 4% as the most recent.

So without the 50% bonus... and with an extra 1% on the spread... by my estimate you are looking at 1% min to 4% max.


2 years ago, even a year ago, the spread was lower and it would have had better returns. You cant base the current product's performance on old rates that are no longer available.


Also, the bonus is ONLY on the PVI account. Which in non Allianz speak means the bonus is only on the GMWB Account. So for accumulation the bonus is useless.