Chad Owen, an annuity sales coach, warns against churning clients into worse policies. An agent solicited his client with letters promising $12,000 gains on a 2014 annuity, but the replacement would have paid $25,000 less. The client ended up investing an extra $100,000 with Chad instead.
2014
$12,000 and $11,000
About $25,000 higher
$100,000
March 26, 2019
Hello, everyone. Welcome to my Live Drive blog. And I'm also the annuity sales coach. I just ran an appointment with the client. I've actually sold them an annuity a few years ago. And they got this letter from a guy. And my whole topic is going to be, don't be that guy, don't be that gal, don't be that agent. And the reason why this is important is because this letter that he got was saying if he basically helped him with this annuity policy bought in 2014, he sent him a letter saying, I could increase your account value. One of them was by $12,000, the other one was by $11,000. And I'm like going, so my client calls me because I sold him a policy two years afterwards because he was unhappy with how that other guy was. And so he's like, chad, something doesn't sound right, something doesn't smell right. Can you come and take a look at this? And I'm sure, of course I'll do it. So I go over there and I see these letters and basically he does tax prep. And it's the. It's, you know, he's an IRA guy is what he says, but he does tax prep for free. And I'm like, there's a catch because he does a tax prep so he can find out where your annuity money is, your potential annuity money is. But the thing is, is he sold the original policy and he was trying to churn it to get more business. And the reason why I say it's churning is because the income account value on this policy that was bought in 2014 was considerably. So the bonus would have been $12,000, but the income account value was $25,000 higher than it was with the bonus. And so therefore it was not suitable to replace it. But this guy was soliciting his already written business so he could get more commissions to roll their clients into an inferior really situation. And I'm going, this is why our industry has a bad name. This is the problem with our industry is you have some of these gu that ruin it for everybody. And they get out there and they try and churn these products and put the clients in a worse situation. And all they're trying to do is, number one, be too lazy or too cheap to get more marketing. Too lazy or too cheap to do the right thing. So they're trying to get their existing clients to do more business, when in reality they don't have a better product. They're just trying to get more commission and don't be that guy, don't be that agent. Let's set a standard in our industry to where we don't do things like that. When I. So I looked at this and I know for a fact I basically called the company, I found out the account value, the surrender value, the income account value, and sure enough, I said, hey, I said, this is not a good. I said, jim, you do not want to replace this at all. Even any product I have, you do not want to replace it because it's not beneficial for you. It's not a good idea. So what does Jim do? Jim goes, you know what? Something didn't feel right about this, so I'm glad I talked to you and thank you so, so much for coming out. And he goes, hey, you know what? I have a hundred thousand in a Wells Fargo account, and I'm just. I had it for a year and I haven't made anything on it, so I want to do something with that. And so the point is, I went out there with the intention to make sure this guy wasn't being taken advantage of, which he was a guy that was trying to scam him out of a rewriting or replacing an annuity that actually was pretty good and putting this guy in a bad situation. And he ended up going, you know what? I have some more money that I want put into this and I want to. I want you to help me with it. That was not the intention of why I went out there. The intention was to help him. So don't try and drum up new business with existing client base putting them in a worse situation. We see article after article of people that are getting prosecuted and fined and Lord knows they should be. Fry them. Anybody who tries to better themselves at the suffering of someone else that trusted them, fry them. Throw the book at them. I'm a big fan of that. I have no.
Sympathy or empathy for anybody that gets in trouble for something they were doing that was wrong. So, guys, I just want to help you with that. Don't be that person. Make sure everything we're doing is right for our clients. Make everything. Make sure everything we're doing, we have the best solution, and we don't replace business that is not suitable and does not put them in a better circumstance. So thank you very much, guys. Hope you have a great day. Happy selling, Sam.
