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Article: Two insurance companies planning trailer-only VAs.(variable annuity)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- September 4, 1995
- Author:
CopyrightCOPYRIGHT 1995 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Atleast two variable annuity companies in the 401(k) and rollover markets are planning to roll out VAs which pay no up-front commissions, but which instead pay a yearly trailer based on a percent of assets under management.
For a few years now, companies such as Pacific Mutual and Security Benefit, have been selling VAs with blended commission structures featuring lower front-end commissions, shortened contingent deferred sales charge periods and back-end trails. And a handful of proprietary VAs use a no-load structure (no front- or back-end loads).
But now, Pacific Mutual and Nationwide have put trailer-only products into registration with the Securities & ...