I can't understand why this industry concocted a product that screams of "stock-market type returns" and then allows ill-trained, non-security licensed agents to market the stuff. The whole premise of an EIA is to tell the prospect that they can get higher, market index type of returns with little or no real market risk.
I don't like the negativity that occured, but if the net result is that the public learns to ask the right questions, the bad apples will be forced to clean up their act... whatever the product. Hansen may have done the legit agents and registered rep a favor.
Swymmer
Dateline on Fixed Index Annuities
Moderators: Josh, independent guy
Re: Dateline on Fixed Index Annuities
In my city (350,000) there is a big personal injury attorney that advertises on TV. He gives his rating over a twenty year period of winning over 95% of his cases. Personal injury attorneys usually sue insurance companies and sometimes the insurance can in turn sue us. Read my above post about people forgetting.
How many people do you think reads their policy? Of those how many understand all that is in that policy? How many people still think their homeowners insurance policy will cover flood? Answer = quite a lot.
When sitting in front of their attorney..............
I would wager that people who are told how an FIA works, will forget after the first year.
I would wager that people who buy mutual fund C shares will forget how that works within a year.
I would wager that all those construction people will forget you told them. The ones that trailer work tools behind their van, deliver plywood, sheet rock, etc. to their job site, have ladders in the ladder racks will forget that you told them their personal auto policy isn't the place for their vehicle. I will wager after an accident that their personal policy declines coverage, will say, you should have told them....it was your duty.
It is part of the victimized society we live in today. People are unwilling to be responsible for their own actions and will seek out the personal attorneys. Do you think there are so many people that are really screwed over my the insurance companies to feed 10 pages of PI attorney's? Or do you think, it is that convenient lapse of memory that helps bring the case to court?
Or..............
I don't hang out with agents, I am the only one in my little old office. IT's been that way for a long, long time. So maybe I am out of touch and agents are not well educated in the products they sell. If it is true, that agents aren't educated well, FIA's probably aren't alone in that column.
How many people do you think reads their policy? Of those how many understand all that is in that policy? How many people still think their homeowners insurance policy will cover flood? Answer = quite a lot.
When sitting in front of their attorney..............
I would wager that people who are told how an FIA works, will forget after the first year.
I would wager that people who buy mutual fund C shares will forget how that works within a year.
I would wager that all those construction people will forget you told them. The ones that trailer work tools behind their van, deliver plywood, sheet rock, etc. to their job site, have ladders in the ladder racks will forget that you told them their personal auto policy isn't the place for their vehicle. I will wager after an accident that their personal policy declines coverage, will say, you should have told them....it was your duty.
It is part of the victimized society we live in today. People are unwilling to be responsible for their own actions and will seek out the personal attorneys. Do you think there are so many people that are really screwed over my the insurance companies to feed 10 pages of PI attorney's? Or do you think, it is that convenient lapse of memory that helps bring the case to court?
Or..............
I don't hang out with agents, I am the only one in my little old office. IT's been that way for a long, long time. So maybe I am out of touch and agents are not well educated in the products they sell. If it is true, that agents aren't educated well, FIA's probably aren't alone in that column.
Re: Dateline on Fixed Index Annuities
Right On Sheryl!!!!!!!!Especially RE: Lori Swanson--She is a real phony!!!!!! She said ALL Insurance agents are BAD.