In addition to securing your client the most effective, personalized life insurance, most agents also recognize the need to educate their prospects about the benefits provided by annuities. Our agents find it particularly important that we take our level of service and coverage to the next level, striving to guarantee that our clients are adequately looked after financially with a variety of annuity products.

Many clients struggle to understand their options and what route they should take. It certainly takes time to put in the necessary research – which is why branding yourself and your agency as their go-to annuity resource has never been more important.

Annuities are quite a lot like life insurance coverage—with an annuity contract you are in agreement with the insurance agency, and in exchange for the promise of lifelong income you pay your premium. Annuity contracts also typically include a provision for payments that can be made to a beneficiary. Besides the basics, how else can you educate your client or prospect on the value of annuity insurance?

There are 3 simple questions that each client can ask themselves. And as their trusted coverage provider you should help them discover the answers, too:

1. What type of annuity should I purchase?

It’s important that each customer knows their options – there are immediate annuities, deferred, fixed and variable. Immediate annuities are meant for those looking for a guaranteed income and want the assurance of knowing the income will last throughout their life expectancy. With a deferred annuity, the client will deposit their money with an insurance company (hopefully yours!) allowing it to grow, tax deferred, until a particular age or agreed upon within your contract; keep in mind that deferred annuities can be either fixed or variable. A fixed deferred annuity provides a fixed rate of return which is guaranteed by your insurance company while a variable annuity allows the client to invest their funds in a portfolio of stock and/or bond accounts.

2. Why am I buying an annuity?

As the insurance agent it’s crucial that you help your client answer this question! Oftentimes, many people make investments and purchase an annuity, without first taking the time to create a long-term investment plan. Making it a point to help them decide how an annuity can enhance their overall financial strategy is the best thing you can do.

3. Are there annuity fees?

Depending upon the type of annuity purchased, each has a different way of charging fees. For example, with a variable annuity, all fees are disclosed in any of the marketing materials or informational pamphlets given to explain the product. In terms of fixed and immediate annuities, your insurance agency creates and disseminates a quote to the client that includes a net of all fees.

Help your clients to gain the financial security they deserve by explaining the ins-and-outs of annuity insurance and the various annuity options they have to choose from. All it takes is a bit of education and the guidance of a trained, licensed professional to help a client uncover a world of financial possibility and protection.

Maureen McLaughlin owns and operates the Pennsylvania-based Connor-Helring Associates, Inc. As a member of the Keystone Insurers Group, Connor-Helring Associates, Inc. has developed in an all-inclusive client-focused coverage resource; specializing in personal lines necessities, commercial insurance and Pennsylvania annuities.

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