Annuities-The Biggest Problems

What is the one of the biggest problem with annuities and the annuity industry? It’s simple. The training and requirements to become an annuity agent (for fixed annuities) are absolutely minimal. The barrier to entry is barely existen. I mean you can literally become an insurance agent over the weekend. Isn’t that crazy?

So why is that a problem? Well, it’s a problem because when you are dealing with an annuity, you are dealing with someone’s financial future. So what makes someone who can pass a simple insurance exam qualified to advise someone on their financial future? It is absurd to think that someone with so little qualifications has the license to do SO MUCH damage to someone.

This is one issue that needs to be addressed. In order to sell annuities, there has to be tighter regulations on what someone has to go through. There has to be a higher standard on the level of competency that is needed to sell annuities. The industry must raise the bar. The insurance industry must put agents through rigorous training before they are qualified to sell annuities.

Think about it. Doctors who advise you of your health have to go through YEARS of training in order to do what they do. There are many annuity agents who outearn doctors by multiple folds. Furthermore, they have the ability to do just as much damage to your future as an incompetent physician. And they don’t have to go through SQUAT.

I am pretty sure I could get a junior high student to pass the insurance exam in less than one week. If not, at a minimum I could get a high school student to do it. It is simply that easy and that is wrong!

So, if you wonder why your annuity agent didn’t tell you everything about the annuity he was selling you and how it would affect your financial future, maybe it’s because HE HAD NO IDEA. And that’s just the start. Stay tuned for Part 2 where I discuss another one of the biggest problems with annuities.

Ignorance ISN’T Bliss

[Slashdot] [Digg] [Reddit] [del.icio.us] [Facebook] [Technorati] [Google] [StumbleUpon]

Tags: , ,

Sorry, comments for this entry are closed at this time.

 

Directory of Finance/Business Blogs