Wednesday, 26-August-2009

1) One of the main products Boss is pushing is the American Legacy i4Life Rider. What this rider specifically does, is that it guarantees monthly income to the client that meets the requirements. The rider works like this, the client has to qualify (ie. ages 50+, 60+, etc.), you deposit money into the variable annuity, and American Legacy immediately sends you monthly checks. The monthly checks are applied against the principal first. When the principal approaches zero, the client is still made monthly checks until they pass away (ie. client wins overall: sum of monthly checks > deposit). If the client passes away, the monthly checks cease (ie. insurance company wins: sum of monthly checks < deposit.) This product guarantees income if one is fortunate enough to outlive the policey.

Client DW called the other day complaining that he received his 1st payment and it reduced his principal. So Boss didn't know why and called up Wholesaler RB at American Legacy. I overheard Boss on the phone and she did not understand how the whole mechanics of the rider worked. Comment: This is a major problem, because she put a lot of clients in this rider the last few months. HK had tried to explain this rider to her months ago and Boss did not listen. HK didn't have a responsibility to tell her, because it's the financial advisors' job to understand the product. So all in all, Boss sold a product to a lot of her clients with little to no knowledge.

2) Boss asked us to repair some mistakes on the summaries we distribute to clients that were over 4 years ago. She verbally bashes us saying there are too many mistakes on these statements. Comment: These so-called mistakes were done by our predecessors. I think what makes the generation of summaries so difficult is that it's all manual. Also, each summary is on a case by case basis; hence, no consistency. To blame HK or I on something we didn't do is just wrong. And why these so-called mistakes weren't caught earlier in the prior years and all of the sudden they have become an issue is beyond me.