5 Tips for Selling Annuities

Many independent insurance agents desire to grow their business by diversifying their offerings. Being able to serve a wide range of clients with a wide range of products is a great way to increase your revenue exponentially. 

Aside from traditional insurance products, one service that many agents opt for is annuities. This financial product can help your clients meet financial goals while also increasing long-term financial security. 

If you’ve never sold this product before, there are some things you should keep in mind that can help you be more successful. Below are five tips for selling annuities.

Sell to the Right Audience

While nearly every adult is a prospect for auto insurance, not everyone is a good fit for annuities. In addition, not all people who are a good target for annuities will likely want the same product. 

Before you can start selling annuities, it’s important to know who the “right audience” for this product is. 

Generally speaking, people who have a high amount of assets that are liquid could benefit from annuities. This could be people who have built their wealth over time, or those who received a recent cash windfall, such as from an injury settlement, an inheritance or the lottery. 

Wealthy people who consistently max out their annual contributions to retirement accounts such as 401(k) plans and IRAs are also a solid possibility. Also, those clients who worry about how some of their assets might affect potential Medicaid qualification might consider purchasing annuities that are Medicaid-compliant.

Know the Types of Annuities

There are two main types of annuities, and the difference lies in when payments from the annuity will start being made. 

With deferred annuities, there’s a delay from when one purchases them and when the annuity starts to make payments. The time period might be one year, five years or even more. 

During this accumulation phase, the annuity might increase in value, which could in turn increase the amount of the payments or help it last for a longer period of time. 

By contrast, immediate annuities take effect right away. They are used to transform a rather large asset that’s liquid into an income stream that’s steady and consistent over time.  

A client may choose an immediate annuity to take a large sum of cash and turn it into these consistent payments over a set time period. This could help control spending, especially if the person came into a large amount of money at one time. 

They also can help to plan for any future financial need without the restrictions that are in place with retirement plans that have tax advantages. For instance, with IRAs and 401(k) plans, there is a minimum age you must be in order to withdraw money without a penalty.

Find Qualified Leads

Selling anything as an independent insurance agent requires a healthy database of qualified leads. When you’re selling annuities, though, you might not be able to rely on a list of leads that you’ve already culled. 

While some of the people on that prospect list might be a good fit for annuities, not all will. In other words, you’ll need to build out a new list for this particular product. 

Of course, a great way to start building this list is by prospecting your current clients. Cross-selling annuities to current clients represents the easiest and fastest way to make a sale. 

From there, you want to rely on the tried-and-true practices you’ve followed to build your other qualified leads lists. This includes capturing prospect information from in-person meetings, seminars you hold, and through direct mail and digital marketing efforts. 

You may even consider purchasing a list of qualified lists to start with to jumpstart your annuity selling efforts. 

Learn Prospects’ Needs

When you sell annuities, it’s essential that you get to know your prospect and what their financial needs are, both now and into the future. More so than almost any other insurance-related product, having this information in hand can make or break a potential annuity sale. 

You need to learn about your prospects’ current financial situation and what their near- and long-term goals are in order to effectively communicate how an annuity product can help them reach those goals.

Rely on Organizations to Support You

There are many benefits to partnering with an insurance marketing organization, or IMO, if you’re an independent insurance agent. When you’re selling a new product, these partners can provide you the support, resources, tools and even leads you need to be successful. 

So, as you embark on selling annuities, know that you should always rely on the tools and services that your IMO provides you to help you in your endeavor. When you partner with GLIA, you’ll be getting deep experience, comprehensive products, cutting-edge technology and the full support you need to succeed selling annuities and other insurance products. 

Discover the Good Life 

At Good Life Insurance Associates, our experienced insurance sales associates are here to provide support and training for both new and experienced agents. To learn more about us, remember to explore our business support services. Or, to speak with a member of our team about your journey to becoming an independent agent, contact us today! 

Discover the Good Life 

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