HELP on MYGA contract question

[JeffRome2023]

I am trying to buy a few MYGAs and Clear Spring wants me to pay for the policy before I actually see it--I have a promised rate and that is it for a MYGA ladder. Below is the reply I received when I inquired why I had to send the checks before I actually saw the policy:

Before Clear Springs can issue and print the annuity contract, they must receive the funds associated with the policy. The receipt of funds is a crucial step in initiating the contract creation process. Once your funds are received and processed, they will promptly proceed with issuing your annuity contract. This is to guarantee accuracy and completeness in aligning your investment with the terms outlined in the contract.
Additionally, I would like to draw your attention to the "Free Look Period." The free look period is a specified duration during which you have the opportunity to review the terms of the annuity contract. It allows you to thoroughly examine the terms and conditions and, if needed, make an informed decision about whether the annuity meets your financial objectives. We understand the importance of this decision, and we encourage you to take full advantage of the free look period to ensure that the annuity aligns with your goals and expectations.
If you have any questions or concerns about this process or the free look period, please do not hesitate to reach out. Our team is here to assist you and provide the necessary guidance.
Thank you for your understanding and cooperation in this matter.

ANY HELP ON THIS? IS THIS NORMAL? THANKS!

 

[JeffRome2023]

I'm naturally suspicious but sending large checks to an address with no policy or contract other than a promise (but no signed promise) of a free look period scares me. I guess I'll call Clear Spring as well.

 

[Tahoe Ray]

I'm naturally suspicious but sending large checks to an address with no policy or contract other than a promise (but no signed promise) of a free look period scares me. I guess I'll call Clear Spring as well.

Is ChatGPT your agent? Because that response in your first post sounds pretty canned...lol.

It's normal but your agent should be able to send you a specimen policy (which isn't yours, but what they've filed with your state).

I can send you one if you like. We write a decent amount of Clear Spring.

 

[JeffRome2023]

Thanks, that is what I wanted to know. Just so many ways to be suspicious these days! That was a help.

 

[scagnt83]

The rate you are applying for is often shown in the application... and the application is a legal contract, officially part of the contract they print and send once funds are received.

Free look period is not "promised" by the carrier. It is mandated by state insurance laws.

If your agent cant answer these questions, red flag.

 

[AnnuityGuy63]

I sold my 1st and probably last Clearspring MYGA 2 weeks ago, the check was overnighted and received on 12/14 and policy issued on the 14th. I just called and after sitting on hold for 32 minutes I called back in, hit the prompt for policy holders and after sitting on hold again for 6 minutes I hit the prompt for them to call me back. My phone rang in about 30 seconds. After verifying who I was I asked when the policy would print and ship and the girl on the phone had no idea, transferred me to new business and they said they USUALLY print 7-10 days after issue. I asked can they email me a PDF and again said 7-10 days after issue. this was not a 5 or 10K sale but $300K and my client keeps calling me asking where his funds are and when he'll get the policy. I understand his concern it's not a small amount of cash here but when these companies act like they are doing us and the client a favor it really leaves a bad feeling. Almost like how dare you want to see your policy.

As I said probably last piece of business they will get from me.

 

[Tahoe Ray]

I sold my 1st and probably last Clearspring MYGA 2 weeks ago, the check was overnighted and received on 12/14 and policy issued on the 14th. I just called and after sitting on hold for 32 minutes I called back in, hit the prompt for policy holders and after sitting on hold again for 6 minutes I hit the prompt for them to call me back. My phone rang in about 30 seconds. After verifying who I was I asked when the policy would print and ship and the girl on the phone had no idea, transferred me to new business and they said they USUALLY print 7-10 days after issue. I asked can they email me a PDF and again said 7-10 days after issue. this was not a 5 or 10K sale but $300K and my client keeps calling me asking where his funds are and when he'll get the policy. I understand his concern it's not a small amount of cash here but when these companies act like they are doing us and the client a favor it really leaves a bad feeling. Almost like how dare you want to see your policy.

As I said probably last piece of business they will get from me.

Has your client registered on their website yet?

 

[AnnuityGuy63]

Has your client registered on their website yet?

NOT YET. WHY DO YOU ASK?

 

[Tahoe Ray]

NOT YET. WHY DO YOU ASK?

Because you can normally see the account being funded before the policy is issued.

IT GIVES CLIENTS PEACE OF MIND.