The annuity space has always raised red flags, from tax-free exchange rules, to suitability, to whether index annuities are securities, to the new fiduciary rule. At every turn, annuities are scrutinized. But as I see it, there are no bad financial products or good financial products – it is how a financial professional uses a product that matters.

Insurance companies are feeling the brunt of the new rule. I have attended many insurance company meetings and, at every one, executives have stated that they are addressing the rule and will come out with products that comply. Paul Garofoli, vice president of marketing at National Western Life said, “Win, lose or draw, the lasting effect of the regulation will be its impact on adviser compensation.”

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