Effective Annuity Prospecting Methods?

[Vanbret]

Hey guys,

I just wanted to see if anyone out there would be willing to share their thoughts on some good methods to drum up some annuity business.

What works, what doesn't?

I'm sure we've all done the mailers before - "Information about taxing Social Security"

To me, that one is just worn out!

 

[Mark Herhold]

I found bi-annual reivews are our best oppurtunity to look for more areas to add client value and ask for refferarals.

Mark

 

[Vanbret]

I have read your article about "annuity marketing"; and may have something that can help you. What type of annuities are you offering?

Hey, Insuranceexec; thanks for the PM! Sorry, I don't have enough posts yet to PM back yet, so I had to respond here.

I've got a pretty broad array of fixed-indexed and fixed....

I've got a great IMO that gives me access to a ton of companies.

I've been kind of focused on the 5 year product range right now....even though I feel like I should be focusing on other products b/c of the stronger commissions....

Any ideas are definitely appreciated!!

Thanks!

Bret

 

[insuranceexec]

In reading one of your past post's; you made mention to Bankers having the best fixed rates. Care to elaborate? Are you referring to Bankers Life and Casualty?

 

[insurehound]

I've been kind of focused on the 5 year product range right now....even though I feel like I should be focusing on other products b/c of the stronger commissions....

And there's the problem...commission focused as opposed to client focused.

I'm guessing the other products are EIAs with long surrenders...

 

[insuranceexec]

Watch the soapbox their insurehound. If you have two identical products and one pays 1% more in commission; which would you sell? Same argument.

 

[insurehound]

insuranceexec...do you really think that's what he is saying in his post?

 

[padthaiforlunch]

I've yet to find two identical products and one pays 1% more commission. I have found two similar products where the agent gets and additional 1% commission and the client loses 1/2% interest.

If you make full disclosure to client, then it would be ok to offer.

Watch the soapbox their insurehound. If you have two identical products and one pays 1% more in commission; which would you sell? Same argument.

 

[insuranceexec]

insuranceexec...do you really think that's what he is saying in his post?

I don't know. Lets ask him. My point being that too many times people get on this bandwagon of saying how EVIL it is to offer a product because it pays a high commission. I do agree with you that offering a product simply because of its commission is WRONG. The agent must do their due diligence to first make sure that they understand the product they are offering; and second that that fully explain in DETAIL how the annuity works to the consumer. I start off every annuity presentation by saying:

"There is NO perfect annuity; there is good and bad with all of them; the trick is to find the good you like and the bad you can live with."

Last year I did almost 20 mil in annuity production and my average commission was around 4%. I have done roughly 1.6 mil YTD with an average commission of 4.25%. Taking into consideration reduced compensation for the older brackets, and the 2,3,4, and 5 year MYG annuities.
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I've yet to find two identical products and one pays 1% more commission. I have found two similar products where the agent gets and additional 1% commission and the client loses 1/2% interest.

If you make full disclosure to client, then it would be ok to offer.

It was an example their Pad. Often North American and Midland National will offer identical products and the commission (including overrides) is higher from North American.

But you are right full disclosure is key.

 

[honestagent]

II start off every annuity presentation by saying:

"There is NO perfect annuity; there is good and bad with all of them; the trick is to find the good you like and the bad you can live with."
.

That is beautiful and I'm betting it works well.