Have You Begun Using “The Annuity Selling Cycle” to Reach The Next Level Of Annuity Selling Success?

Bill Harris

The Annuity Selling Cycle

Wouldn’t be nice if YOU just had to knock on the door, slide the annuity application under the door, wait 5 minutes, and then see the signed completed annuity application and check slide back to you under the door?

As you are aware, that will never happen, why?  With the exception to existing annuity policy owners, annuities are NOT bought. They are sold. Therefore, the Annuity Selling Cycle is a series of 12 seamless unnoticeable point of sale Next Steps for you to take that can quietly & unceremoniously lead to the completion of an annuity application; assuming, of course that it is in the best interests of the prospect.

Please reflect on your last annuity presentation when you drove home without the application. Which of the 12 steps shown on the below image were missing from your annuity presentation?

AnnuityCycleImageAnnuity Cycle Step 1- The Warm Up- Create Rapport & Trust & Likeability

During your last presentation, did you “too quickly “begin talking about business or did you take the time to build rapport and trust first, then likability? Later, we can show you how I attempt to build rapport, trust, and likeability during appointments.

Annuity Cycle Step 2- Pinpointing the Need

During your last presentation, did you take the time to pinpoint their needs, the urgency to solving those needs, and where to find the money that will solve those needs?

Needs- For example, potential needs could be living too long, inflation eroding their purchasing power, market losses due to market downturn or fluctuations. Potential changes to Social Security, low Bank CD interest rates or protecting the people they love.

Urgency- A Bear Market may begin tomorrow, present Multi Year Guarantee Annuity interest rates might decrease soon, there is a BIG difference between the amount of money that can accumulate over 30 years (acting now) vs. the amount of money that can accumulate over 29 years (procrastinating for one year; heck even one month), approaching an insurance age change; life insurance & health insurance may never get this affordable ever again.

In other words, do NOT scare but show the urgency of acting then and now assuming, of course, that the annuity is in their best interests.

Finding The Money to Solve Their Needs- Over 80 % of the people you meet have money in the bank. Use compliant friendly ways to compare a Bank CD to an Annuity.

Almost 90% of the people you meet spend money carelessly and you can teach them how to redirect their daily $3.99 coffee expenditure into a flexible premium annuity or life insurance. “Max, what is more important to you…That Cafe Latte or your wife & children?

Annuity Cycle Step 3 – Formulating the Solution

Question 1: How do you describe what you do for a living when you meet a new neighbor? What is your elevator speech? And a question I have never asked anyone before, how do your spouse and children describe what YOU do for a living when they are asked?  Please ask them tonight. Do they say you are an Insurance agent, Advisor, or Insurance Professional?

In our opinion, we are “Solutionists” more than anything else. We first pinpoint problems. Then, we formulate solutions. So what is your new “elevator speech” and how can your spouse and children now describe what you do.

“My spouse or my Dad is a Solutionist and he/she

  • Helps  people protect their retirement savings from market  losses due to market downturn or fluctuations.
  • Shows  people how an annuity can pick up where their Social Security  benefits leave off.
  • Helps people get potentially higher interest rates than Bank CDs.
  • Makes sure people to not outlive their money.
  • (Smile) and if your children are real young, “My Daddy or Mommy helps people sleep at night without worrying.”

SAD STORY: A senior officer of a major insurance company (and dear friend of mine) who was weeks away from dying asked me to write a letter to his family explaining what he did for a living. Naturally, I did write it and now his spouse, children & grandchildren know about the hundreds of lives that he helped,  the  hundreds of careers he enhanced, and the thousands of  policy owners that benefited by his  insurance company’s competitive renewal rates and reasonable surrender charge  periods.

HAPPY STORY- Tell your family tonight that you are a “Solutionist” and specifically tell them the types of solutions you offer and the lives you have already changed. (Smile) They might begin seeing you as George Bailey from the 1940’s Frank Capra movie, “It’s a Wonderful Life” or as Georgette Bailey in the 1980 TV version.

Annuity Step 4- Suitability Questionnaire

We have heard others say that Compliance is a “Sales Killer”. Nothing could be further than the truth.  In actuality, they are “Career Savers” since they know the Do’s and Don’ts of every Insurance Department of Insurance and they DO differ from state to state. What could be worse than a fine or an insurance license suspension? With that said, Annuity Step 4 is a good time to use your Suitability Questionnaire. Why? Using your Suitability Questionnaire earlier than Step 4 is arguably too early since you need time to build rapport and trust and they are more apt to want an annuity after they see their problem and  see your solution. Using your Suitability Questionnaire later than Step 4 is arguably too late since Close #1 is the next step. However, use the questionnaire that Compliance prefers including when to use it. OK?

Annuity Step 5- Close #1

Industry statistics report that insurance professionals ask for the order, in other words, ask a closing question only 50 % of the time. Effective today, we must begin asking for the order 100% of the time  IF we know that an annuity is in their best interests.

While our content on Closing is in excess of 28 pages and this Post is like 1% our “The Annuity Selling Cycle” curriculum, allow us to give you, maybe, the best close of all time. And what is the best close? “Well, would you like to go ahead with it?” With a “Yes” , you begin to complete the application . With a “No”, you ask, “Why do you feel that way?”

Annuity Step 6- Addressing Objections

Objections-expressed or implied-general or specific- genuine or artificial- arise at the point of sale. Successful insurance professionals must discover the proven best ways to address Objections & Myths that annuity prospects have been voicing for some time like:

Popular Objections

  • “I never tie my money up for longer than a year.”
  • “Why don’t I get the full amount of the index gain?”
  • “I do not like the surrender charge period.”
  • “Bank CDs provide more liquidity than Annuities!”
  • “Why isn’t the annuity insured like Bank CDs are insured?”
  • “I will just ride the market out until the market rebounds!”
  • “I am happy with my advisor!”
  • “The press & media are saying to stay away from annuities!”
  • “I can do better with my money!”

Popular Myths among Consumers

  • An Annuity is a time-ticking tax bomb!
  • You cannot control how your beneficiaries can receive the annuity money.
  • Surrender Charges are a disadvantage to owning an annuity.
  • You always “forfeit” access to your money once you elect lifetime income.

Popular Myth among Agents & Advisors

  • Each state has an almost identical “state safety net” (Guaranty Association) that protects almost most annuity owners & beneficiaries from insurance company insolvency.

Since the BEST responses to the above Objections & Myths represent at least 50 pages of content and we are running out of time on THIS POST, click here  and tell us which 3 Objections & Myths you want us to write about in our next Post or during our next web event.

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