Presented by Richard Mangiameli
Today we hear that, as an advisor, we need to become a resource for our clients. We need to build a relationship so strong that clients will call us seeking advice for a good attorney, accountant, other insurance lines we may not offer – even to the point of asking for a good contractor to remodel or a roofer.
It is important for each advisor to leverage relationships with attorneys, CPAs, bankers and other advisors or agents, using everyone’s expertise to provide quality service and products to each client.
We don’t want to forget about the sale and the importance of positioning the sale. I read the article below in the NAIFA Annuity Outlook magazine that provides some really good insight. As an advisor we need to seek first to understand our clients’ concerns and needs. No product will fit every need. We can’t force a square peg into a round hole. We need to understand the client’s goal and then develop the right strategy and supply the right products to achieve those goals.
Remember that no sale will be complete unless you can build a good relationship with your prospect. The trust factor is very important and you need to be sure to listen to what your client is saying throughout every step of the sales process.
Click on the link below to read the full article about positioning for sales success.
http://annuityoutlookmagazine.com/2014/07/positioning-for-sales-success/
Presented by David Corwin
One of the least thought about benefits of providing annuities to your clients is that the annuitant can, in most cases, have complete control over how their beneficiaries will gain access to the money at the client’s death. When presenting an annuity contract, don’t forget to share this important aspect with your client or potential client. It doesn’t take the place of a trust or will, but for a lot of people it would serve a very valuable purpose. While your client may be looking at purchasing an annuity contract for retirement purposes, they may also be concerned that one of their beneficiaries (often a child) isn’t financially responsible enough to appropriately handle a lump sum payout. In many cases it seems the client just names a beneficiary and the contract is issued; however, it should be presented to the client that they can pre-select alternate payout options when the contract is written. For example, they could choose a ‘life payout with 15 years certain’. In this scenario, if the client passes away, the beneficiary would receive the remaining number of years left in annual installments, rather than in a lump sum.
Just another aspect of annuity contracts that many advisors may fail to mention.
Presented by Richard Mangiameli
Fixed Index Annuities are celebrating their 20th anniversary. The first index annuity came out in 1995, and by 1997 there were over three dozen life insurance companies that created their own variation. Over this time frame, more than $400 Billion has been used to purchase this powerful planning product.
Even today you will hear clients asking about the Hybrid Fixed Annuity. When we hear “Hybrid” we associate that with a lot of different products – we mostly hear it in the automobile industry. But today in the insurance and financial planning industry, many agents are being asked by their prospective clients about the “Hybrid” annuity, and that prospect or client is asking about the Fixed Index Annuity. What they hear and read is about “hybrid index strategies/indices” and the “hybrid income riders”.
It’s time to brush up on your knowledge of Fixed Index Annuities – the Hybrid Fixed Index Annuity!
For more information, give Richard Mangiameli, LUTCF, FSS of Financial Brokerage a call at 800-397-9999.
Listen in to this podcast to learn about how the fixed annuity conversation can be tailored to focus on income. We will be sharing a conversation that has worked for many financial professionals. This podcast is the first in a two-part series.
Focus On Income – Part One
Guarantees provided by annuities are subject to the financial strength of the issuing insurance company; not guaranteed by any bank of the FDIC. Guaranteed lifetime income available through annuitization of the purchase of an optional lifetime income rider, a benefit for which an annual premium is charged. Please note that in order to provide a recommendation to a client about the liquidation of a securities product, including those within an IRA, 401(k) or other retirement plan, to purchase a fixed or variable annuity or for other similar purposes, you must hold the proper securities registration and be currently affiliated with a broker/dealer or registered investment adviser. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific recommendation to liquidate a security, please contact the individual state securities department in the state(s) in which you conduct business.
Annuities are designed to meet long-term needs for retirement income. They provide guarantees against the loss of principal and credited interest, and the reassurance of a death benefit for beneficiaries. Please note that in order to provide a recommendation to a client about the transfer of funds from an investment product to a fixed insurance or annuity, you must hold the proper securities registration and be currently affiliated with a broker/dealer. If you are unsure whether or not the information you are providing to a client represents general guidance or a specific recommendation to liquidate a security, please contact the individual state securities department in the states in which you conduct business.
This information is designed to provide general information on the subjects covered. Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Encourage your clients to consult their tax advisor or attorney.
Presented by David Corwin
I once heard a story about an annuity agent that had been in the business more than 20 years. Now this agent I’m sure cared a lot about his clients, but over the years started becoming tired of learning new things. He became stagnant and complacent; unbeknownst to him, this is the worst position to be in. I’m not sure if it was the industry constantly changing and not being able to keep up with times, or lack of support from the company he was writing through. He was in the independent agent space which means that he had several choices of carriers to write through and could offer the most competitive products to his clientele. (I personally feel that it was his responsibility to learn new things and not just try to sell his favorite annuity product.)
Let’s get to the story . . . An older man and his son met with this agent about what he should do with his windfall gain from a relative that had passed away. The agent didn’t do any fact finding on the older man due to the fact that he was a current client; he had written an annuity 10 years prior, but had little to no contact with him in those ten years. The agent took out his favorite annuity product brochure and presented it to the client. The older gentleman told the agent that he would like to take it home to review it with his son and would like to meet again and move forward. The sale was made and the client took home a brand new shiny annuity contract with a surrender period longer than 10 years. The agent didn’t at any point offer an alternative product (he didn’t know of one because of the complacency issue). This product could have been a single premium life insurance contract because, had he been asked, he would have liked to create a legacy with this money for his family. This product could have more than doubled the amount that would have passed on to his family when he died two years later. Since the son was there for all three meetings and took good notes, this agent was taken to court and ultimately lost the battle due to not having any supporting documentation.
I’m sure that all of you have heard similar stories or maybe you have some of your own. It is paramount to our business that our clients have the right insurance product based on the information that is gathered through a fact finding session and not just selling your favorite product. What’s more important is remembering why you chose this industry as your profession, recognizing the value you have to offer and never letting rejection get you down. Answer objections with facts, convey information confidently and show your determination with persistence.
Annuities