Reaching Annuity Clients Without Jargon

Annuity Seller Tips!

Are you reaching for annuity clients with the industry jargon?  The concept of an annuity is based on very human values like planning for retirement and passive income you can rely on, but all too often when it comes to financial matters, people have a terrible time seeing through the jargon and details. Insurance and tax policies tend to come with a lot of unfamiliar multi-syllable words that are downright intimidating. Especially to someone who is thinking about how to plan a reliable grocery and recreation budget for their retirement years. It is important for your clients to understand the kind of financial decisions they are making.  So, you want to explain as much as possible in relatable terms rather than technical details. For annuities, cover the central human concepts, and skip the financial terms until the second half of the conversation.

Annuity Clients Think About Personal Retirement

Everyone wants to retire well, but retirement isn’t what it used to be. Social security only covers so much and company retirement policies often have contingencies. Introduce the idea that a personally controlled retirement plan can’t be revoked, drained, or have the terms changed without their knowledge. They get to know exactly how much to pay in and how much they will get out of it. Lay out the options, but leave the technical stuff to the side or keep it as final points. They will want to know the difference between the variable, fixed, and income annuities.  Let them sink their teeth into the human-relatable benefits first.

Annuity Clients Thinks About Passive Income

Even if a client is not looking for a specific retirement plan, you can sell them on the idea of non-retirement passive income. Most people work for a lifetime contributing to a retirement plan to gain some passive income.  Why wait? Explain that some annuity plans allow them to put in either large sums or regular payments into the annuity.  The funds will transfer it into a reliable passive income whenever they want it to start dispensing. This is great for people who have a large saving that they don’t want to overspend.  Also, people that get paid irregularly that would like to live on a regular supply of money. By highlighting the human flexibility of the plan types, you can help clients understand annuities.  That they can be used for almost anything that could benefit from a steady monthly fund.

Annuity Client Think About Funding for Loved Ones

It is easy to get into a one-beneficiary mindset, but annuities don’t have to benefit your client alone. Most people have at least one person they care for that they would like to see taken care of. Older couples might want to set up an extra income for their surviving spouse.  Grandparents can use annuities to make sure there is college money available for their grandchildren. One under-recognized group is the adult children of aging seniors. Think of adults with parents in a retirement home. These adults are often busy with their own children and are worried about being able to care for their aging parents.  An annuity in their parent(s) name could create a safety net.  This would ensure that their elderly parents will be well taken care of if they can’t handle it in the future.

Clients need to understand what each plan has to offer them in terms of life quality, timing, and financial peace of mind. Once have an idea of what they want from an annuity, then they will be ready to talk about taxes, payments, and financial policies. Start with the concepts they know like retirement plans and assured income before you jump into unfamiliar financial jargon.

We would love to help you with your annuity sales product needs.  Contact Us!

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