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All You Need To Know About Selling Annuities


What are Annuities?

An annuity is a financial contract that guarantees the investor a steady income stream over time. People mostly use annuities as a retirement investment. They are designed to pay out regular sums, which can be helpful if your budgeting is based on a steady income.

Annuities can also be helpful in the event of your death. You can choose how to set up your annuity so that it will provide lump-sum payments to your partner or other beneficiaries in the event of your death.

You must understand exactly how much money you need for retirement because once you sign up for an annuity, it’s typically not possible to cancel it and get all your money back. So, make an informed decision by researching annuities thoroughly before committing.

Who Can Buy Annuities?

Annuities are often purchased by those who are nearing or have retired. This is because annuities can be a good financial choice for those looking to secure a steady income stream in retirement. While anyone can purchase them, individuals with a large amount of money to invest and those who aren’t reliant on their savings for immediate income tend to benefit most from annuities since the money will not be available for withdrawal for a significant period.

Why Do People Sell Annuities?

Insurance companies are always looking for new ways to attract customers and keep their existing ones, so they regularly offer new products and services. An annuity is one such product because it’s a specific type of investment account that allows people to purchase insurance while they save money.

Starting a Conversation with a Potential Client

You’ve met the perfect potential annuity client. They’re a great fit, and you’re excited to get on the phone with them to explore why an annuity is a good choice for their retirement savings plan.

Here’s how to make sure your first conversation with a potential annuity client goes smoothly and sets the stage for future success:

1. Be prepared.

Know your client’s financial situation, including their assets and liabilities.

2. Ask questions.

You can’t know their needs if you don’t ask them.

3. Explain how an annuity works.

Annuities can be complicated, so take the time to explain it in simple terms.

4. Be honest about whether or not an annuity is right for them.

It doesn’t help anyone if an annuity isn’t appropriate for this client.

5. Focus on them, not yourself.

They don’t care about your name or when you graduated from high school. Instead, they want to know how your products will benefit them and solve their problem, so focus on that.

6. Don’t focus on selling.

It’s normal to feel like you need to “sell” someone on buying an annuity, but it doesn’t work. Using pressure tactics or making things seem scarier than switching people off can lead to a backlash against your company. Instead, focus on helping them understand the product and how it can help them achieve their goals.

7. You don’t need to know everything about every annuity.

However, if you ask questions about their lifestyle and financial situation, you’re doing the right thing.

Some Common Objections and How You Can Overcome Them

Many people want to buy annuities, but they’re not sure how to overcome objections that come up. Here are two common objections and how to overcome them:

1. Objection: “I don’t have enough money.”


To buy an annuity, you need to make a lump-sum payment, which can be daunting if you’re not used to making large financial decisions in a short amount of time. But the good news is that most companies offer several payment options for annuities, including paying overtime. So, if you’re worried about coming up with the lump sum at one time, talk with your broker to determine what payment options are available.

2. Objection: “I’m afraid I’ll lose my money if the market suffers.”


There’s always some risk when investing money. However, as long as you do your research and know what kind of company you’re working with, you can minimize that risk. In addition, your broker can help guide you toward companies with low risk and high performance so you can make the best choice for your portfolio.