Equitrust

[Justin Bilyj]

Just checking in, did a search on the forum for them, didn't see anything besides the fact that Guggenheim bought them. They own Security Benefit too.

Just looking for some opinions on their product line...
Appreciate any insight!

 

[DHK]

I'm being "recruited" by a good friend of mine to offer EquiTrust's FIA. While their offering is quite good... I have a problem with the BBB+ or B++ rating.

https://agents.equitrust.com/AnnuitiesHome/StrengthofEquiTrust/tabid/213/Default.aspx

http://www3.ambest.com/ambv/bestnews/presscontent.aspx?altsrc=14&refnum=18826

Most E&O claims due to insolvency will only be covered if the policy was issued with a company with an A- rating or better.

But I also understand that this product features/benefits WON'T be available after the ratings are increased. So there's a "window of opportunity" available for policyholders... but yet, if something happens, I, as the agent, would not be covered due to insolvency.

Anyone have any thoughts towards how you handle this or rationalize it?

Any E&O companies that will cover insolvency below a A- rating?

This statement in 2009 about their downgrade is 'nice'... but doesn't fix the E&O problem that I would have:
https://agents.equitrust.com/AnnuitiesPages/BuzzDetails/tabid/234/ItemId/442/Default.aspx

 

[pbbaseball]

Pretty solid product line I think. Attractive rates to get customers in the door, but you got it, less than A is why they offer decent rates. There was a pretty decent thread on here about offering less than A rated products, good, bad and ugly.

 

[KRobby]

I'm being "recruited" by a good friend of mine to offer EquiTrust's FIA. While their offering is quite good... I have a problem with the BBB+ or B++ rating.

Some people prefer higher risk/returns when the risks are still relatively low, some don't. Most of my muni sales are BBB to A. Very few AAA or AA.

Ratings are highly overrated, especially with annuities. Find your buyers.

-King Robby

 

[pfg1]

Some people prefer higher risk/returns when the risks are still relatively low, some don't. Most of my muni sales are BBB to A. Very few AAA or AA.

Ratings are highly overrated, especially with annuities. Find your buyers.

-King Robby

Comparing muni bond ratings to insurance company ratings doesn't really equate.

Personally, I stick to A rated companies, that's just me.

 

[KRobby]

Comparing muni bond ratings to insurance company ratings doesn't really equate.

Personally, I stick to A rated companies, that's just me.

We can't make much commissions $'s on 'just you'.

 

[cloisbarton]

Product is average for income rider and caps. Offers big bonuses and big commission. I do not suggest them often in case design for agents however, there are better options available to consumer. Have some agent who love their Single Premium IUL though. As with any product it is only as good as it meets the needs of the clients. In regards to ratings they are still B rated, so that still can become a hurdle in the sales process, but again depends on your client. Client is the key.

 

[DHK]

I'm going to disagree with you slightly. The agent is the first key. If the agent doesn't have confidence in their recommendation, the client won't buy. People buy people, not companies.

That being said, this product looks quite good. I'm looking at the Market12 Bonus Index Annuity. Commission is only 4.5%, so not that "huge".

12% bonus credited over three years: 6% up front, 2% accumulation value added on the 1st 3 contract anniversaries.

14-year surrender schedule

Income For Life rider: increases base for lifetime income by 6.5% for up to 15 years. (This is not a cash accumulation guarantee, but a step-up of the income base). I feel very comfortable with the rider, because I sold similar riders like this before on variable annuities back in the day.

My only hang-up is the current ratings of the product... because my E&O won't cover it in the event of insolvency.

Otherwise, it's a great product!

 

[Tahoe Ray]

I'm going to disagree with you slightly. The agent is the first key. If the agent doesn't have confidence in their recommendation, the client won't buy. People buy people, not companies.

That being said, this product looks quite good. I'm looking at the Market12 Bonus Index Annuity. Commission is only 4.5%, so not that "huge".

12% bonus credited over three years: 6% up front, 2% accumulation value added on the 1st 3 contract anniversaries.

14-year surrender schedule

Income For Life rider: increases base for lifetime income by 6.5% for up to 15 years. (This is not a cash accumulation guarantee, but a step-up of the income base). I feel very comfortable with the rider, because I sold similar riders like this before on variable annuities back in the day.

My only hang-up is the current ratings of the product... because my E&O won't cover it in the event of insolvency.

Otherwise, it's a great product!

That is not street comp for MarketTwelve...it is MUCH higher (unless something has changed very recently).

 

[DHK]

It's what I was told. I don't have it in writing anywhere.