You’ve drawn in new business with your successful prospecting efforts. You have scheduled several new-client meetings and developed a list of compelling, thought-provoking questions to elicit responses that can help you better understand each person and their needs. Your new client is now sitting across from you at your office table, and you have started the annuities conversation.
What should you highlight to strengthen the case for buying into a fixed indexed annuity (FIA)?
Retirees and pre-retirees tend to have the same qualms about investing in annuities. In general, advisors need to educate clients about the benefits of annuity ownership while countering negative perceptions about the product.
In a Huffington Post blog, personal finance expert and wealth manager Carlos Dias Jr. suggests several reasons why retirees should consider indexed annuities, despite their bad reputation. “A lot of arguments exist against their favor,” Dias says. “Most struggle with annuities and how they promise future gain for present sacrifice.”
It’s important to emphasize that an annuity is an excellent long-term financial investment with a number of unique benefits that sets it apart from other retirement finance vehicles. Understanding the six most common client concerns and conveying a FIA’s specific features and benefits in your new-client conversations can pave the way to sales success.
1. Retirees and pre-retirees don’t want to outlive their assets. FIAs can provide guaranteed lifetime income, so individuals won’t run the risk of running out of money.