The Annuity Sales Pitch… What They Don’t Tell You – (Part 2)
The saga continues… In this program, I continue to expose what is not said during annuity sales pitches. The old adage that annuities are sold and not purchased is very true. Without the “kind and polite” assistance of insurance salespeople, my opinion, it is doubtful that many variable annuities would be sold in America.
I base this opinion on the large sales commissions offered to salespeople to entice them to sell variable annuities. The commissions can often be in the 3% to 5% range and often more than that. Imagine someone retiring with a lump sum of $600,000 in their 401(k).
The newly minted retiree receives help from an insurance salesperson who convinces them to purchase a variable annuity with the entire lump sum. Let’s assume the insurance salesperson will make 5% on the transaction. That works out to be a very nice $30,000 payday for the insurance agent.
In this program, I continue to explore the annuity sales pitch and the often unspoken words that taint the sales process. I hope you enjoy the program.
The Annuity Sales Pitch… What They Don’t Tell You!
Variable annuities are one of the most popular insurance products sold in America today. Insurance agents love them because they offer a very lucrative sales commission. However, I wonder if as many people would buy them if they really understood the whole story.
On this program, I spend time talking about the annuity sales pitch and provide the rest of the story. I go point by point through some of the most common sales pitches and provide you some additional information that is not usually shared by the person trying to sell you that annuity.
My largest complaint about annuities is the way they are distributed and the large sales commissions offered to agents to sell them. I hope you enjoy this inside look at variable annuities.
Segment 1 – The NYSE Goes Down Because of a Software Upgrade!
Segment 2 – Annuity Sales Pitch
Segment 3 – Annuity Sales Pitch
Segment 4 – Annuity Sales Pitch
Fiduciary Wars, The Battle to Decide the Fate of Your Money
The average person cannot tell the significance or the difference between a broker, registered representative, insurance agent or investment adviser. Most people lump them all together and call them financial folks… on a good day! I have heard some other names as well but we will leave that for another day. However, from a legal perspective, there are some monumental differences no matter what you might believe. Part of the confusion is the advertising conducted by financial and insurance firms that sound so comforting. These firms will often use such terms as help, assist, advise and so on. It is very comforting that someone is here to take care of you. However, what they advertise and what they tell you verbally, in-person, is in many cases, far different from what the actual contract states.
Caveat emptor or let the buyer beware is something you should always have on your mind. When it comes to financial services, people can be very friendly and persuasive but take the time to read the bloody contract. Sales practices and legal practices are far different in the real world. I have seen many situations where people have relied on what they have been told, only to be disappointed by the reality of the contract. The fiduciary wars happening in Washington DC right now is a very hot battle going on to shape the future regulatory environment of financial services. In many ways it is a battle for the sole of the financial services industry. The outcome is uncertain at this point, but it does not change the reality of caveat emptor!
On the program this week I talk about:
Segment One – Obamacare and the tax credit problems
Segment Two – The fiduciary wars
Segment Three – The fiduciary wars continued
Segment Four – Insurance agents and products
Enjoy the program