Marketing Annuity Replacements

[Tahoe Ray]

What got me thinking on this line was a recent prospect who purchased an annuity 12 years ago, still hasn't turned on income and we showed an immediate increase in both accumulation and income benefit base value on day 1 (with few % surrender remaining) plus about 18% lifetime income increase. Figured there would be others in similar situations as her but I see that it is a very particular subset of purchasers who would meet the necessary criteria (i.e. very long deferral period and haven't yet turned on income).

There are, but any agent worth anything is probably trying to upgrade that client to a better product (for their situation) the day it comes out of surrender. You'd need exceptional timing to do any real volume.

 

[Sheryl J Moore]

If Ken Fisher and JG Wentworth can do it...

Tread carefully. sjm

 

[Jack12345]

If Ken Fisher and JG Wentworth can do it...

Tread carefully. sjm

Wow... you are so right lol I didn't even think about this. I'm fairly new in this industry and the longer I'm around the more shocking the blatant hypocrisy of FA's trash talking insurance/annuities holding themselves as morally superior 'fiduciaries' becomes.

 

[DHK]

Yes... but they're replacing annuities with either an investment portfolio (with the promise to help offset surrender charges over time) or a reduced lump sum cash out. It's not a replacement of an annuity contract with another annuity contract.

 

[walthamny]

Usually people who have invested in annuities are in 2 camps. Happy or not happy. You wont get anywhere with most unhappy crowd. With the happy crowd, there is usually additional assets that they have and you simply sell annuities with benefits that their older annuities dont offer. You will find these prospects frequently most advisors sell an annuity and never call for years and they leave money on the table. Now if the client really wants you can also replace the old annuity at the same time selling a new annuity in some cases, however, you can also book a future sale when the old annuity surrender ends. They will be the easiest sales in your career if you can show value and make the sale in years advance. Its also compliance headache proof. Also approaching prospects saying what they have now is not good is not that productive. Its negative. They should meet with you because what they bought years ago was very good, however the world has changed, tax laws have changed, US financial outlook has changed so it makes sense to review to see if we should now put more into annuities or may be less depending on their circumstances.