Selling annuities can be exciting as you help your clients work towards financial and retirement goals, but you must be well-versed in this product offering if you hope to excel with it. If you have not had a great deal of experience with annuities before, you may want to understand the various products and how they work before becoming an active seller.
In conjunction with other offerings or pursued singularly, annuities make a lot of sense from an agent perspective. Kick-starting the annuity portion of your business can be done effectively if you have partnered with a broker who is committed to serving you. In this situation, you need a broker committed to understanding the industry and helping you select the right offerings for your client’s needs.
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In short, an annuity is a long-term savings product that generates income and helps to avoid the common issue of outliving your money source, a chief concern among a generation of potential annuity buyers with increasing longevity. One of the primary reasons that a client expresses an interest in an annuity product is because these tools are often viewed as safer than other investment options and it’s much easier to customize how the product works for the client. With so many types of annuities on the market, it’s an excellent opportunity for you as an agent to help your clients find the right product for their needs.
Annuities are seen as an excellent retirement savings opportunity because with so many products on the market, a client can identify the most appropriate company and annuity offering for his or her needs. Read on to learn more about the most common annuities your clients may be interested in so that you can help point them in the right direction when the opportunity presents itself.
When a client purchases an immediate annuity, he or she will make a lump-sum deposit to generate an immediate stream of income. The client will usually receive income from this annuity from between five and twenty years, and you can get quotes for what this income stream would look like in advance to help your client make an informed decision.
An immediate annuity goes into the payout phase very quickly, usually right away. An immediate annuity is usually the right choice for a client who is already retired or quickly approaching retirement or any other person who wants to begin receiving a payout from their product as soon as possible. The payout amount depends on the size of the initial deposit and the term for which the recipient would like to receive an income stream.
Unlike an immediate annuity, the owner of a fixed annuity is likely to wait to receive income from this annuity. A person using a product like this may make a lump sum deposit or make deposits over time in order to receive a guaranteed rate of return.
One of the downsides of most traditional fixed annuity products, however, is that the beneficiary does not have much control over how the money inside the product is invested. Fixed annuities are well-suited to clients who want to save on management fees and contract expenses while earning tax-deferred interest with very little market risk.
The benefits of selecting a fixed annuity include:
Most agents have heard of variable annuities before, but it is important to carefully screen your client ahead of time to ensure the proper fit. These annuities can be more volatile and are frequently not appropriate fit for seniors as a result. The payout on a variable annuity depends on the type of investments chosen as opposed to the guaranteed payout of a fixed annuity.
Knowing how these products work can help you close sales more effectively and efficiently. It’s essential to understand how these products can help clients achieve goals so that you can recommend the product and structure in line with their needs. Thankfully, the team at TR King is committed to help you regardless of where you find yourself on the spectrum of annuity knowledge. It’s our goal to educate you and provide you with access to some of the best products in the industry.
As an agent, you serve in two important roles for your clients interested in annuities: educating them about the benefits of these products in general and helping to guide them in the selection of the right annuity for them.
As part of a broader retirement plan or income stream, annuities may be an important component for the client to receive money now or to accumulate money now for withdrawal or a stream in the future. This requires understanding your client’s goals in general so as to help point them in the right direction for all their insurance and annuity needs.
If you’re currently selling other products, like life insurance, you know about meeting the client’s needs for financial protection. Incorporating annuities into your sales portfolio allows you help clients achieve their goals by finding the right companies and products for the short and long term.
When selling annuities, it’s important to partner with a broker you can trust. Annuities are an exciting product offering, but they are also governed by complex regulations and it takes assistance from a skilled team to offer annuities effectively. If you believe that annuities are a product line you’d like to offer, you can contact us directly to learn more. It’s our goal to help you present products from the finest companies in the annuity industry, and we can help connect you with the right products for your client’s needs.
When you choose to contract with TR King, you can count on:
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