I Really Want to Get into the Annuity Market, but Have Reservations...

[lementex]

Life Insurance agent here. About 10 years of experience. Took a break, and getting back into it. When I sold insurance, I was so focused on Term and UL, I never took the time to understand Annuities or bother to sell them.

Well now that I'm a little wiser (I hope), I have a fierce interested in learning all I can in the hopes to sell Annuities (Fixed EIA mainly). In my research though, I'm concerned. High fees, low returns - Annuities get killed in the press for being horrible options for any situation.

I want to make sure that when I sell something, I can sell it with confidence that I'm doing what's best for my clients. I'm worried that Annuities are not worth the time and Im looking for evidence otherwise. From my perspective, right now, Annuities are nothing more than an alternative to bank CD's.

Am I right? I need help. Information to bolster my confidence in this product because I know I will be more successful selling it when I have it.

Any advice/info would be greatly appreciated.

Thank you

 

[Stephen]

Annuities can be a great solution for the right person, and right situation. The agents that give annuities a bad name are the ones that jam square pegs into round holes.

Are you working with anyone that can help you with casework and determine when an annuity might be a good fit?

 

[lementex]

Absolutely, I agree. I have not signed any contracts yet. I found an IMO that carries a lot of what Id like to offer and the commission schedule is competitive, but I know for a fact that this group would encourage me to sell an annuity under every circumstance. So I could call them with advice, but I know it's a bit biased in all cases.

I would just like to see some evidence that would make me feel better about annuities in general. Maybe I'm reading too many articles on the internet - its all bad - exceptions being as a CD alternative or the elderly for immediate income solutions.

What about my 25yr old co-worker who has $25k in a USAA Bank Roth IRA (variable product -Emerging Markets)? I told him about the EIA in a conceptual context, and he's interested in rolling it over. Its a small account but I want to make sure that I'm doing the right thing by pitching it as a GROWTH alternative. Or should I not do that....

 

[nathan.lee]

I would just like to see some evidence that would make me feel better about annuities in general. Maybe I'm reading too many articles on the internet - its all bad - exceptions being as a CD alternative or the elderly for immediate income solutions.

What about my 25yr old co-worker who has $25k in a USAA Bank Roth IRA (variable product -Emerging Markets)? I told him about the EIA in a conceptual context, and he's interested in rolling it over. Its a small account but I want to make sure that I'm doing the right thing by pitching it as a GROWTH alternative. Or should I not do that....

In today's current low interest rate environment, I personally don't think a Fixed or Fixed Indexed Annuity is an appropriate GROWTH option for a 25 yr. old. but that depends on his risk tolerance. Maybe a short term MYGA for a small portion of this $25k would be appropriate if he wants zero market exposure.

As far as "convincing" yourself that annuities are "worth it", there are a number of websites available for you to use as research.

Jack Marion's sire is one.

index annuity jack marrion fia

Sheryl Moore has another great site.

Sheryl J Moore and

AnnuitySpecs.com

Annuity Think Tank has a ton of info too.

Annuity Think Tank - About Annuities | Retirement Income Center

Best of luck out there!

 

[lementex]

Thanks a lot, I really appreciate it. I'll start reviewing those now.

I agree with your assessment. Too bad, because I know a lot of people with IRA's but most of them are younger and aren't as concerned with conservation a much as they are with growth. I certainly want to do whats best for them.

 

[Stephen]

Thanks a lot, I really appreciate it. I'll start reviewing those now.

I agree with your assessment. Too bad, because I know a lot of people with IRA's but most of them are younger and aren't as concerned with conservation a much as they are with growth. I certainly want to do whats best for them.

It really looks like getting your 65 might be a good idea. You can focus on insurance and also have options for folks with some risk tolerance.

 

[slushpuppyking]

Annuities interested me when I first took my insurance test but I was (and still am) intimidated by it. Final Expense is just an easier thing to break into and understand. I've read quite a bit about annuities and I think they sound like a great option in the right situation but I really wouldn't know where to begin in terms of selling it.

I'm only 33 so maybe I will just stick with FE till I'm like 40 and hopefully have stacks of cash in the bank and then I'll explore annuities again and see how to break into it.

 

[lementex]

Annuities interested me when I first took my insurance test but I was (and still am) intimidated by it. Final Expense is just an easier thing to break into and understand. I've read quite a bit about annuities and I think they sound like a great option in the right situation but I really wouldn't know where to begin in terms of selling it.

I'm only 33 so maybe I will just stick with FE till I'm like 40 and hopefully have stacks of cash in the bank and then I'll explore annuities again and see how to break into it.

Im the total opposite. I know nothing about FE. I would love to learn though

 

[slushpuppyking]

Compared to annuities there is nothing to learn haha. Small policies for seniors (usually low income) that cover their final expense needs (funeral, remaining bills, etc.). Face amounts average between $8000-$15,000 and the monthly premium will be anywhere from $45-$75 on average.

Biggest challenge of the product simply being getting them qualified for the best rate because of all the health and script stuff.

Marketing compared to Annuities is easy too (I'm assuming). You can do direct mail or cold door knock. So far with Annuities it sounds like seminars are the most effective method and marketing that and setting it all up sounds more complicated than calling on a DM lead.

 

[AngelBand]

I really like Sherly Moore's site- always good info on there- good luck!