Equity-indexed annuities offer extremely high commissions to EIA salespeople compared to other products - why is that?
2006-07-12 07:34:46 · 4 answers · asked by KatGuy 7 in Business & Finance ➔ Insurance
Because they tend to be sh**ty products with very high management expenses and fees. The only way to get them out the door is to pay salespeople a huge commission.
2006-07-12 07:45:12 · answer #1 · answered by Oh Boy! 5 · 1⤊ 0⤋
The commission to the salesperson that sells you the annuity contract can be anywhere from 6%-10% because they are selling a difficult to understand product that caps the upside potential of the annuity.
Because the upside potential is capped for the person buying the annuity, the insurance company stands to make a great deal of money from these products.Therefore, they are willing to pay high commissions to their salespeople.
2006-07-15 12:20:45 · answer #2 · answered by ps2754 5 · 0⤊ 0⤋
Actually, you may find that EIA's are a good product for you. It depends on what your needs are.
Obviously, if you are retired or soon-to-be then an EIA may be good for you. Also, if you have $$$ in CD's, IRA's, Money Mkts,
Stocks, etc.. there are neg. ramifications to all of these.
CD's and MM get too low of a ROR. IRA's are taxed to death.
If you are retired or almost then be careful with your stocks.
An EIA can be tied to the S&P 500 (the top 500 stocks) historically, mathematically, etc.. an EIA can earn a ROR of 10% annually.... not always but a lot.. of course it can vary.. but if you
currently have your $$$ tied up not earning a lot this may be the product for you. Be careful weigh out your options.
Sorry for not answering your exact ?? However, it seems as though you may be interested in EIA's and they are good.
You can also fund other products by getting an EIA, i.e. from the interest earnings, etc.
2006-07-12 19:11:12 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Compare rates free
2015-02-05 10:58:49 · answer #4 · answered by ? 1 · 0⤊ 0⤋