Sales is a lucrative profession if you’re good at it. Selling insurance is attractive since it usually generates a steady income stream for the agent. And annuities are one of the easiest insurance products to sell. That’s because you’re offering peace of mind in retirement rather than making them fearful when you talk about house fires or disabling accidents. Here are a few tips on how to build a successful annuity business.
Get the Necessary Licensing
If you’re going to sell insurance, you will need an insurance agent license. However, annuities can be considered security rather than an insurance policy. If you’re going to sell fixed annuities, this won’t require a securities license. If you’re going to sell variable annuities, then you need a 6 and 63 securities license, as well.
Understand Your Products
People are reluctant to buy complex financial products because they do not understand them. When someone cannot explain the product without leaving people in a haze, most potential buyers will say no because there is too much room for surprises like hidden fees in the fog.
This is why you need to learn about all of the annuities on the market and be able to explain them to your potential customers in a way they’ll understand. Understand the pros and cons of guarantees and death-benefit riders. Be able to explain the investment options that may exist inside of a variable annuity. Know how to explain what surrender periods and early withdrawal penalties are. And know how annuities work.
Find Your Target Market
The typical market for annuities is older people approaching retirement or those that have already retired. However, you shouldn’t neglect other opportunities. For example, annuities are a great retirement planning tool for the wealthy. They are rarely subject to the contribution limits that apply to retirement accounts while the money grows tax-free. You could also look for people who have cashed out their retirement accounts or pension and need a safe place to put it.
Market to Your Target Group
Market to the group you’ve chosen. Get lists of potential clients. Send them marketing content in the format they prefer. For example, seniors rarely choose to read online newsletters but will respond to printed mailers. Cold-calling may work if you’re targeting business owners who have few other options for retirement planning. Understand how the sales pitch differs for each customer demographic.
Deal with Your Prospects
Schedule appointments so that you can talk to people. This could be a phone call or face-to-face meeting. It is hard to sell complex financial products like annuities without being able to explain them to them in person. Treat everyone as a valued customer. If they don’t want to buy an annuity, you can still ask them to refer their friends.
Maintain Contact
Call and visit all your clients at least once a year. Good service often leads to repeat business, such as referring their friends and family members to you
Please keep track of those who say they aren’t ready to buy it now, because they may be interested when they’re closer to retirement.