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[senior-advisor-indiana]

When I sit down with a prospect, I let them know that I can't gie them advise on thier stocks or securities accounts. I ask them if they are happy with thier current investments and if they say no i ask them what they don't like. Then I take thier dislikes and show them how it would work in an annuity. Example... I lost alot of money. Well in a FIA you can't lose your principles or the interest you earn unless you make withdrawals in excess of the free 10% per year. The market goes up, your money goes up. But the company does limit how much upside you have. Thats how they gaurantee you no loss in the down years. Now the worst case scenario(in annuity) is no up years in the next 10 years, you get 3%. Worst case in the market, you lose most if not all your money. Most seniors aren't looking to get rich off thier investments, they want to make sure they can pass some on to thier kids or just make sure they dont run outta money. After I get thier information on thier accounts I tell them that I am going to review this with my marketing organization so we can come up with the best plan because they deal with these situations every day. SO they are the experts not me.

 

[Crabcake Johnny]

Sounds like you're doing a great job. And I don't think there's any chance that over a 10 year period it's possible to just get the guaranteed 3%.

 

[johnrocks]

Great illustration,I believe that when presented like that people may understand annuities a little better.

 

[CHUMPS FROM OXFORD]

So would you say that an insurance agent with no formal financial training is ill-suited to sell annuities?

No. Perhaps just a bit limited regrding their portfolio of products.

 

[CHUMPS FROM OXFORD]

I always use A rated sompanies. Did you know most banks are B rated?

No. I did not know that. Of course...the only Bank I use is "A" rated. Well...at least I hope so. This Bank is only used for Money Market funds anyway. We get information all of the time on mortgages and I have always stayed away.

 

[johnrocks]

When I sit down with a prospect, I let them know that I can't gie them advise on thier stocks or securities accounts. I ask them if they are happy with thier current investments and if they say no i ask them what they don't like. Then I take thier dislikes and show them how it would work in an annuity. Example... I lost alot of money. Well in a FIA you can't lose your principles or the interest you earn unless you make withdrawals in excess of the free 10% per year. The market goes up, your money goes up. But the company does limit how much upside you have. Thats how they gaurantee you no loss in the down years. Now the worst case scenario(in annuity) is no up years in the next 10 years, you get 3%. Worst case in the market, you lose most if not all your money. Most seniors aren't looking to get rich off thier investments, they want to make sure they can pass some on to thier kids or just make sure they dont run outta money. After I get thier information on thier accounts I tell them that I am going to review this with my marketing organization so we can come up with the best plan because they deal with these situations every day. SO they are the experts not me.

Do you recommend any books or other bits of info. also do you have a favorite co. for my type clientele? Thanks in advance

 

[senior-advisor-indiana]

QUOTE]Do you recommend any books or other bits of info. also do you have a favorite co. for my type clientele?[/QUOTE]

As far as training books, no I haven't read any. Some marketing places have ghost written books that you can leave with the client. I think that is lying though because it makes them think you wrote a book about annuities. I know of an agent that uses that method.

As far as the best company for seniors. Just use an a rated one. What you really have to look at is certain products. Go with 10 yr or less, unless it is like a 401k or IRA that they are rolling because the length of surrender usually doesn't matter. I have used amerus on my last couple of sales, thier multi choice income plus. They get a gauranteed 6% income of that product for life regaurdless of the account value without annuitizing it. That the new trend.

I am getting ready to sell sun life's multi point to a client that has money in cd's because he wants to avoid paying taxes. Sun Life is one of the highest rated companies, I think maybe the highest. But that product is the most liquid. They can get 90% of thier money out in the first year. Get all of it out after 3 maybe 4. It pays 10% comm. ages 0-80.

It really just depends on the situation. Everyone is different, thats why you need a good marketing org. But anyway I'm glad I have you leaning towards annuities john, you helped me out alot too.

 

[senior-advisor-indiana]

By the way, those products I mentioned don't have 3% gaurantee. I think it is around 2.75% on 90% of the initial deposit. It doesn't really matter because if the gaurantees come into play, everyone will be broke that has investments.

 

[arnguy]

In another thread I mentioned that SPIA's are often the best type of annuity for seniors who are on Social Security. It complements the SS income and they cannot outlive it. Also, it does not require underwriting so unhealthy seniors can purchase it. There are instances where it may be advisable to recommend SPDA's , but there should be a shorter surrender period and suitability should be taken into consideration to avoid problems down the road. Due diligence should be done on the insurance company. Annuities are just the opposite of a life insurance contract, but make sure the client knows the implications of tax-deferred vs. tax-free.
The great market for annuities IMHo starts around age 55.

 

[arnguy]

Johnrocks, you appear to be a standup, honest guy, so you you should not experience any problems selling annuities to seniors. However, there are a lot of unscrupulous agents out there who relly do a disservice to the seniors and the insurance industry as a whole. Also, ther are CD type annuities that pay higher rates than bank CD's and have short surrender periods.