How to Sell Annuities

There are two things that you need to know if you want to learn how to sell annuities. Annuity income is a guaranteed way to make money over the years. It is also a long-term commitment that offers tax-deferred growth. Understanding these facts is vital if you want to earn as much money from the annuity income as possible.


First, learning how to sell annuities requires a detailed look at your client’s financial picture. While they are registered securities, the queries you have to ask for your client to get the right answer are eerily similar to the questions your trusted, registered investment friends ask. The first question you need to ask is whether the annuity they own and enjoy is gaining market value or not. Another question you need to ask them is whether their portfolio is balanced in terms of asset types and other financial considerations. Finally, you should find out how confident you can feel about their ability to secure the future of their funds.


Next, your question should focus on the annuity itself. What is it offering to their income stream? Are there other income generators within the account? If there are not, then you may want to consider removing them from your client’s list altogether because you do not need their support in the form of bonds portfolio or annuity insurance.


Once you have answered these questions, ask yourself how to price your annuities. This is actually the most challenging aspect of this entire process. How do you arrive at an accurate fee? How much income will your clients receive over the course of their lives? Is your price enough for the risk you are taking in promoting their annuities? Your answers to these questions can make a big difference in how successful your sales are going to be.


The pricing of fixed annuities will normally be set by a federally authorized pricing authority or the Internal Revenue Service. You should be aware that they are not regulated by the Securities and Exchange Commission (SEC). These pricing authorities, also known as tax authorities, do not take into account the long-term performance of the company’s stock market performance. They simply assess the value of the fixed income securities in a company holds at the date of sale and use that as the basis for determining the price the buyer will pay.


This system can result in different fees for different types of fixed annuities. For instance, a lump-sum payment could be much higher if it was received from a market risk event. Conversely, it would be significantly lower if the same amount of money were paid from a non-market risk event. If you are working with an annuity company, you should discuss this issue with them and see what their recommended fee schedule will be. When you sell annuities, you should be prepared for how the process will work with these varying fees.


In some situations, an annuity client may receive income later than anticipated. This can be due to the death of the annuity recipient, divorce, loss of job, or other similar events. Even if the expected date of receiving full retirement income is six months away, the actual amount of income may be delayed until a year or more later. If you are working with a company, it will be important to notify them of any income fluctuations so that they can adjust the terms of your contract accordingly. This is another situation where you would be wise to contact a qualified attorney to obtain legal assistance on how to sell annuities when this occurs.


Some insurance companies do not allow annuity payments to be received until a certain period of time has gone by. In this case, it will not be possible for you to sell all of your remaining premiums in two years or less. The company will usually require that you wait at least three years from the date of your initial annuity payment before you can receive the lump sum. If you sell all of your annuities before this time expires, you may lose the opportunity to receive a large lump sum. If this is the case, you may want to have a lawyer assist you in selling your annuities.