Anybody Around Here an Annuity Expert? Best Way to Get Started in That?

[slushpuppyking]

So I've been here long enough to see that if you are really new and trying to figure out where you want to go in insurance you have plenty of people to go to. It seems like Final Expense and Medicare Supplements are the most popular suggestions for new guys. I myself am leaning towards Med Supps since so many vouch for Frank and clearly there is a market for it.

However I think annuities are very interesting and while I am still in this newbie stage I wanted to at least explore it as an option like I have FE/Med Supps. In the end I might decide it isn't for me but at this point I'm just looking for info.

For FE/Med Supps you can do door knocking, cold calls, etc. Many people here have programs in place that you can use. Various lead choices as well.

But when it comes to Annuities I have no idea where you even begin.

 

[RyanCO]

This is a pretty complicated (and even controversial) topic. Annuities have received a bad reputation over the years, primarily because of the way they have been marketed. Fixed income annuities (FIA's) have been at the center of the controversy.

I would say this: When it comes to annuities, you're dealing with people's life savings, their retirement income, their family's nest egg. This is a huge responsibility that must be taken seriously, soberly and with great care. You owe it to your clients and prospects to be knowledgeable not only on the products, but how they fit into the big picture.

I think that, rather than trying to go over this in this venue, I'd suggest finding a mentor who has a good understanding of annuities and overall financial planning. FIA's have been badly over-sold in the past, but can be a valuable element in an overall picture if utilized judiciously. You can contact me offline if you'd like.

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[jacobtn]

I write around 1.5 mil per yr in indexed annuity premium, while my main focus is Med Supp/FE. My avg case size is 60k, these policies are written on my "warm market" clients, the ones that know me and are already doing business with me. I took 3 yrs of fact finding before I was comfortable presenting one, for reasons mentioned above. There are many moving parts (think Med Advantage X 10), esp once you get into income riders, allocation strategies etc.

Of course if you just do simple vanilla fixed MYGA products they are simple (think CD type product), but income riders and bonuses sell annuities and are fine as long as they are suitable fo the client.

 

[nathan.lee]

In addition to the many knowledgeable people you will find on this forum there are many outside sources of information regarding annuities. (Fixed, Indexed, SPIAs, MYGAs)

I respect and read Jack Marrion's site and Sheryl Moore's sites.

Jack Marrion's Index Compendium

Sheryl Moore's Annuity Specs

Jack also has a book which I have not read but has been recommended several times.

Index Annuity Book

I agree with Ryan that finding a mentor, in any business, can and will be very helpful in your development as an agent, an advisor, and a salesperson. Another option is finding a good IMO/FMO that is willing to spend time training you on the products as well as suitability and positioning. Avoid mentors or IMO/FMO's that seem to only offer ONE product as the solution for every client.

To Jacob's point, many of the agents and advisors I work with write 500K to 8 million of annuity premium annually as ancillary business to their overall practice. Many focus on other products and services and are able to capture the annuity sale through appropriate fact finding and positioning.

Good luck out there and we are here if you need help.

 

[slushpuppyking]

Wow thanks guys! Sounds pretty complicated and a bit scary. Guess I better stick to FE/Med Sups in the beginning to get my feet wet and build from there.

I would never want to take advantage of someone or accidently screw up their life savings.

It also seems to me unless you have a "warm market" already than when it comes to annuities you kinda have to be captive and work for a respected agency. I mean I can't imagine annuity business can be generated by cold calls, door knocking, or leads. Seems like you have more of a financial advisor type role and I would think people in large feel most comfortable speaking about large finances in an office at a reputable business.

This is me just making assumptions though.

 

[The Rabbi]

I tried to get into the annuity business. Unfortunately it was after the recession started and people stayed put I also noticed that to sell annuities successfully, one has to be able to understand broker statements and be an anylist and most annuity agents studied finance in college. While you're busy making money with FE/sups, do some reading. I also learned long term care ins and sell one once in a while and life ins, term, wl. It all depends on what talent and skills you have and how hard you are willing to work and for how long to make it.