A Beginner's Guide to Selling Annuities

With the Baby Boomers currently retiring, the importance of annuities is becoming central in many Americans’ lives. According to the numbers, there are more than 40 million Baby Boomers between the ages of 59 and 67 who are preparing to retire. If you are a broker hoping to sell annuities to your clients, you already know that they are complicated financial instruments that are difficult for beginning investors to understand. In this article, we will review some tips that will help you convince a client to buy an annuity.

Explain Annuities in Easy-to-Understand Terms

Annuities, plain and simple, are a life insurance contract that a person buys through an insurance company. Go over with the client the different types of annuities you offer, making sure to explain the differences between them. Based on what you know about the client, focus more on the type of annuity that is the best fit.

Outline the Benefits of Annuities

The first benefit to mention to your clients is that all annuities provide tax-deferral, which is to say that as soon as a client puts money into an annuity product, taxable interest and gains do not result in an annual taxable event. Tell your clients that immediate annuities offer a stream of income with a rate of return that is the most competitive of any conservative fixed-income vehicle. If your fixed annuities and variable annuities come with principal protection from the insurance company, be sure to state this to your clients.

Attend the Annuity Sales Support Training Series

Attending a webinar or interactive sales training session is a great way to expand your sales knowledge. Receiving the tools and training you need to pitch annuities to Baby Boomers will serve you well when your clients ask for facts, numbers, and personalized information. If you attend the webinar at Brokers Alliance®, we will take care o