If you’re an agent working the annuity markets, you know fixed and indexed annuity sales are at historic highs. If you’re not, now is the time to get involved.
Interest rates are up, stock and bonds markets are down, and major banks are failing at an unprecedented clip. Meanwhile, consumers are looking for safe places to invest and grow their money. Annuities offer an unparalleled history of comfort and reliability. These investment contracts provide your clients the peace of mind they desire.
How Do I Break In?
I am sometimes surprised by how few agents actively market annuity policies. There is a small learning curve, but generally speaking, they are uncomplicated products. So why do agents oftentimes overlook annuities as part of their practice?
The simplest explanation might be unease. Talking about, and moving client’s money, can create apprehension. That’s understandable.
Once you complete a few transactions, however, it becomes second nature. Soon you will be asking all your clients if they have passive money to invest. Most will be open to this discussion and will appreciate your guidance. More than ever, consumers are looking for dependable investments they do not have to worry about.
Moving Your Insurance Practice Froward
If you have not already, you should take the annuity CE courses required by your resident State. You need CEs anyway, so why not learn more and add another product you can market?
Next, you might consider finding a mentor. Many experienced brokers/IMOs are happy to assist with sales. You might consider having your mentor involved in your first case or two. Yes, that usually involves a commission share, but 50% of something is better than 100% of nothing. You’ll learn a lot.
At the same time, choose an experienced IMO and contract with a couple of the larger, highly rated carriers. Take their required annuity training and learn product specifics. It’s easy to win new business with a professional team by your side.
Get Comfortable Talking About Money
Have you ever noticed how banks and other financial institutions often inquire about their clients’ deposits? Then they try to refer their captive audience to an in-house investment specialist.
Guess what? That’s you. You’re the annuity specialist. And you need to present yourself as someone who can discuss financial transactions beyond other insurance products you currently market.
Banks are already selling annuities to your clients. Investment firms are as well. But these institutions have limitations as to what they can offer. You, as an independent broker, have many more options. You can beat the banks and investment firms on rates and benefits more often than not.
Always Be Cross-Selling
If you’re working the final expense, Medicare or life insurance markets, you already have a captive audience. Your clients are oftentimes more financially conservative to begin with. They are ideal annuity candidates.
You might be surprised to find that many of your clients already own annuities. Oftentimes, their previous agent is no longer assisting them. Rolling over or exchanging mature annuity policies is easy and helpful work. This is especially true now that interest rates are high and new policies offer more attractive benefits.
Strike up a conversation and confidently let your existing clients know about your other areas of expertise. Build your book of business and have renewal options ready when your client’s accounts mature.
Add annuity pages to your website featuring policies you offer. Send out an email to your clients and make them aware of your offerings. Here’s an example from our site: https://www.ohioinsureplan.com/annuities/annuity-quotes/
You Can Also Buy Your Own Annuity
Why not buy a small annuity for yourself or a loved one? Perhaps the best way to break into the annuity market is to own one. You can lock-in 5.50% growth for a few years AND make a commission on top of that!
When you practice what you preach, it’s easy to sell. Now is a great time to establish a fixed or indexed annuity. You’ll be more confident selling when you already own a policy. And you’ll have this experience to share with your clients.
Safe & Reliable Products During Uncertain Times
Fixed annuities sell themselves. They are safe and insured. Many companies offering them have been around for well-over a century. Inflation is driving rate up so annuity yields are very competitive. Now is a great time to lock-in rates that most certainly will be higher than what’s available in the future.
Indexed annuities are as versatile as ever. Modern indexing methods allow consumers to safely play the markets in many ways. They can invest based on growth, contraction, precious metals, proprietary indexes, foreign markets and much more.
The bottom line: There is something for everyone with fixed and indexed policies. Now is one of the best times we’ve had in years to get involved in annuities.