Selling annuities to seniors has always been a delicate transaction and now, after seeing how a casually sold annuity product to an elderly individual can destroy a producer’s life and livelihood, many advisors have implemented new strategies or standards when it comes to selling annuity products to Americans older than 65.
In part one, we discussed how taking extra considerations when selling annuities to older people as well as recording annuity sales transactions can mitigate the odds of the same thing happening to you. Now, we’ll address a few more strategies advisors are using to protect themselves.
Ask clients to bring a trusted family member or friend along
It’s always a good idea to ask your clients to bring a responsible child or other close relative to meetings at which you discuss the option of an annuity sale. Not only should this person attend the closing session, but ideally, he or she would also accompany your clients to at least one overview meeting prior to making the sale.
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Annuities are complicated products and remembering all the details can be daunting for any one person, so having a close family member present to help keep track of the details will also help to relax clients. As a protective measure, many advisors already insist that a family member sit in whenever they work with a senior client. This prevents the family from later accusing advisors of misguiding an older relative or selling them a product they didn’t fully understand.
Wait until clear regulatory guidelines are established