Cold Calling for Annuities

Feb 15, 2016

  1. suranceman
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    Hello all,

    I just finished getting my insurance license, and I plan on selling life and annuities. I know cold calling can work for life products, but how about annuities? Is cold calling for annuities viable as a way to generate new business?

    If so, could someone kindly tell me what kind of demographics (age, income, etc) I should target when I get my list.

    Also, does anyone out there have a script that has produced favorable results when cold calling for annuities? If so, please share.

    Thank you for your help; it's greatly appreciated!
     
  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    These are great questions to ask your IMO.

    In addition:
    - Do you know the laws and regulations around 401(k), 403(b), 457, IRAs, and Roth IRAs? (Look up IRS publications 560, 571, and 590a & 590b).

    - Do you know how to integrate the benefits of an annuity in a retirement income plan?

    - Do you know how to explain the different kinds of annuities without confusing your prospect? (Namely: Fixed, Fixed Indexed, Variable... along with immediate and deferred?)

    - Do you know how many of today's lifetime income benefit riders work so you can present them properly without unintentionally misstating its benefits? (For example: A 7% step-up on the income rider for basing lifetime guaranteed income is NOT the same thing as a 7% rate of return.)


    Selling annuities is NOT for the new agent until they get some training (or someone to do joint work) in retirement planning. I'm not telling you not to do it, but that it's far more than just "a simple sale" to do it right.

    I would target homeowners aged 50-70. Since annuities are more of an 'asset' sale, I wouldn't be too concerned about income ranges for annuities as I would be for life insurance.

    As far as a script, I wouldn't lead with product. I would lead with a planning process and/or ask a lot of questions. Annuities are a solution to a problem. The problem they solve is not having a lifetime guaranteed income.

    For ideas of questions to ask, I would go to www.lifehealthpro.com and search for articles by Van Mueller. He's got some great questions you can ask in both your prospecting and fact-finding.
     
    DHK, Feb 15, 2016
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  3. suranceman
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    @ DHK, thanks for your reply!

    First of all, I don't have an IMO. I am not even appointed with a single company. I just got my license last month. I am preparing to get going in this business. Finding an IMO is something on my to do list. The idea of cold calling was just a thought I had, so I figured I would ask about it.

    I have begun to learn all there is to know about different types of annuities. I have already become very proficient in understanding different life insurance options, but my knowledge of annuities is still a work in progress. Before I go out and try to sell anything, I will certainly be able to explain the difference between them all and actually understand how they work. I work during the day, and nights and weekends I study all this stuff.

    Thanks again for your feedback on this :)
     
  4. KRobby
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    Plenty of people have, but you want to keep the call short and crisp, mention two features and set an appointment. The last person I knew to cold call on annuities targeted business owners.
     
    KRobby, Feb 15, 2016
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  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    When you're new, DON'T try to become proficient on everything. Your best asset right now is time and focus.

    I would focus on 1 line of products, such as life insurance. Get to know term and a good permanent life policy. You might even throw in a DI policy. One good carrier for all 3 would be Assurity Life. That would be a good way to get started.

    Determine who your best market is for that and just focus on that for one year. Then add more ways to market and or new products to offer.

    But if you don't form good habits or get started on at least ONE good product and marketing method... you'll be studying for the rest of your life. There's TONS to learn, and you WON'T learn it all. The more I learn, the more I realize how much more there is to learn.
     
    DHK, Feb 15, 2016
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  6. Iwillpay
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    A consistent supply of leads is non-negotiable ie is a must to really succeed.
    Also chose a company that pays well in other words have a good compensation package.
    Renewals and bonus will make life easier as you age into the business.
     
    Iwillpay, Feb 15, 2016
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  7. Glen Shelton
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    I thought I would become the richest guy in the world selling telemarketed annuity leads that were generated via cold calling.

    Guess what? I was wrong. It is very hard to generate annuity leads from cold calling. I think annuity is a cross sale opportunity from other products - life/health/P&C
     
  8. KRobby
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    What was your pitch?
     
    KRobby, Feb 15, 2016
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  9. Tahoe Ray
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    Hello, KRobby, you wanna buy an annuity?

    No?

    Why not?

    All right, I see. Good answer. Thank you.

    In all seriousness, annuity leads are pretty tough to generate with any scale, that's why they're outrageously expensive and are mostly garbage.
     
  10. Glen Shelton
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    I tried at-least 3 or 4 different scripts. I would have to dig them up but I encourage anyone else to try
     
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