(Complete Show Notes Below)
In the 30th episode of the Financial Procast:
In a stunning statement to a group of bankers in Boston, Mark Grier, vice chairman at Prudential said, “We're getting more than 2 percentage points of fees from the assets that are part of our annuity business. In your business, you probably would dance in the street over 40 or 50 or 60 basis points”
Take that you suckers! Here you bankers have been sluggin' it out for table scraps and we've been raking in the money over here at Prudential.
We're all in favor of insurance companies being profitable but perhaps it would be best if we didn't actually brag about it? Furthermore, it would probably be best if we then took that money and used it to give our policyholders enhancements to their contracts…just an idea.
Maybe they will anyway. The SEC is pushing to have all variable annuities come with a summary to simplify and fully disclose their fees. We think this is a great idea and that the insurance companies offering VA's should do this anyway.
Why make a government agency tell you to do something you should do anyway? A great way to build trust and goodwill with your customers is to make your product easy to understand. If you are convinced that it's good enough to bring it to the marketplace, then you should stand firm on your pricing. Trying to bury current fees and possible future fees deep within your prospectus makes it seem as though you are trying to hide something.
If you like it, save your money and buy something that has real value. Is it any surprise that De Beers is actually the company that made us all believe that a diamond ring is the only choice for declaring your love to the world?
We found an article from business insider that exposes the racket that is the diamond industry and we encourage our listeners to stop supporting this cartel.
The article is here: http://www.businessinsider.com/why-diamonds-are-a-sham-2013-3
Brantley is a practicing life insurance agent and has been for over 18 years. After years of trying to sell like his sales managers wanted him to, he discovered that people want to buy life insurance if you actually explain the benefits.