Over the last few year’s there has been much discussion about how insurance agents and (other member’s of the financial services industry) should align with those of consumers. Under a commission based compensation system, there is always a financial incentive for an insurance policy (or investment) to be recommended that will result in higher compensation for the agent (or advisor). This has happened with investments such as mutual funds moving from high front end (first year) commissions, to back end commissions to low-expense charge funds supported by fee-based planning. Whether the insurance industry likes it or not this is coming even though the Department of Labor files Official Delay of Fiduciary Rule‘s Best Interest Contract Exemption, Class Exemption for Principal Transactions and PTE 84-24 . And there is the question of Have annuity sales bottomed out?because of the portion of the DOL Fiduciary Rule that has already been implements. On annuities State Insurance Regulators Could Set Their Own Best Interest Standard. Annuities such as single premium fixed immediate annuities definitely have a place as part, not all, of a retiree’s financial plan. The complex, high cost cost annuities such as indexed annuities and variable annuities do not have a place for anyone. The Insurance Bill of Rights is a common sense best-practices standard that should be followed by all members of the insurance industry.
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