Annuity Immediate Quote

Closing annuity sales is the point of the exercise, and every professional knows the euphoria of a perfect presentation and close. Some salespeople believe it is the hand of destiny ushering them through the signatures, to the button-up, the handshake, and the drive home where they bask in the good fortune of finding that “low-hanging fruit.” The true professional spends the drive home replaying a different visual, a series of familiar steps that lead inevitably, unerringly to a new client for life. One salesperson gets lucky, the other gets validation.

The perfect presentation and close takes on a Zen-like quality, like the sound of one hand clapping. There is no sale, no close. There is a problem that finds a solution, a fear that finds comfort. All reasoning, all motivation comes from the client. Aristotle nailed it 2400 years ago: “The fool tells me his reasons, the wise man persuades me with my own.”

Now that you’ve given your first pair of Safe Money Seminars and collected a couple dozen appointments, here are some defining dos and don’ts. When precisely executed, my three appointment process of closing annuity sales will assure not only sales, but new clients for life. For example, do remember that all prospects walk into your office (or await your arrival at their home) with important core emotional values – wants, fears, hopes and dreams. Don’t jump into your pitch. If you insist on jumping into your pitch, save yourself the trouble and take a loaded revolver, get in the bathtub and blow your brains out. You’ll earn roughly the same commission.

The FUD Factor

Instead, do observe the FUD Factor. All people have fears, uncertainties and doubts that haunt subconscious caverns and, unless confronted, render their host incapable of making decisions. These FUDs not only define their host’s sense of self but also dictate how they relate to their money. Mr. and Mrs. Prospect are their fears, uncertainties and doubts as well as their money – all in varying yet fuzzy degrees. You must use your first appointment, your get-acquainted session, to deliberately and profoundly connect with these inner emotions.

How? Never lead with statements when you can lead with questions. Ask questions—well-crafted, provocative, incisive questions—and don’t be so eager to tell your story that you neglect to hear your prospect’s story. These are your money moments. The more time you spend soaking in the FUDs of your prospects, the more they will respect your advice, then help you craft solutions to their liking. The more they will think it was their idea.

And pay attention to body language, words they choke on, core emotional issues and outright fears. People are motivated by fear and greed, but fear will move them to action faster and with greater resolve than greed. Key in on the boogeyman, what keeps them up at night, what haunts their dreams. Most people need a psychiatrist more than they need a financial advisor. Fact is, a financial advisor is not very good at closing annuity sales until he or she becomes a good psychiatrist.

Three Questions

My favorite leading question is simply, “Where are you from originally?” When asked sincerely, the question gives them permission to take an autobiographical stroll down memory lane. Their eyes take on a nostalgic glow. There is a scant grin as they drift back in time recalling their childhood, their parents and siblings, schoolmates, the home they grew up in, what things were like in those days, and the passport that led them into adulthood. Your job here is to clam up and listen. Take notes like a freshman. You’ll discover bedrock values along with irrational beliefs, paralyzing fears and whimsical dreams. This exercise has nothing to do directly with closing annuity sales or getting to their money… but everything to do with getting to know who earned their money. The value of their assets is less important that the values that created them.

Next I say, “Tell me about the work you did before you retired.” A person’s identity is largely defined by their occupational history. What they did for a living is who they are. Their need to find a sympathetic ear to acknowledge career accomplishments is on equal footing with their need to trust someone to respect what they’ve accumulated along the way. Talk of work often leads voluntarily to talk of IRAs and 401(k)s, but this is not an invitation for you to pounce on their nest egg. They’ve been waiting all their lives for a financial advisor to just listen to them. Use conversation extenders like, “…and you feel this way because?” or “…and that experience is why you’ve kept your money in CDs all this time?” Get to the blood, sweat and tears that went into earning their nest egg.

Then I say, “Now then, John and Mary, tell me why you asked for this appointment and maybe the two or three most important things you’d like us to talk about.” They usually have a list of items to go over from your Safe Money Seminar, but if at this point they look at you like a deer in the headlights, try an alternate question like, “Tell me about the best financial move you ever made.” Many people will seize the opportunity to gloat over victories. Surprisingly often, however, they’ll volunteer their worst financial moves in painful detail, blow by blow, reaching deep to expose feelings that cry for emotional connection. This is when you know at a primal level that nothing in your arsenal for closing annuity sales equals the fire power of getting your prospects to tell their story.

A Few Wows

Your ratio of them talking to you talking should be about 5 to 1 or, in an hour, 50 minutes them to 10 minutes you. Remember, in your Safe Money Seminar you asked them to bring copies of last year’s tax return, life insurance and annuity policies, and brokerage account statements. Since the first appointment is not about the diagnosis (finding what’s broken), nor the prescription (closing annuity sales), you’ll use the little time you have to ‘Wow’ them as much as possible. For example, if their tax return shows $7,000 to $8,000 in interest income, it’s a safe bet they have roughly $200,000 in bank CDs paying 3.5% to 4% interest. You quickly do the math, glance up from the documents and say in nonchalant doctor speak, “And you’ve got, what, about $200,000 in bank CDs?” They verify the dollar amount for your notes and think, “Wow, how does he know that?”

Finally, you conclude the meeting. The simple message here is that, like any good doctor, you have not attempted any diagnosis and are far from prescribing any cure. The operative word here is “research.” It will take you a week to research their current portfolio and/or assorted financial documents and identify areas that are not reaching their highest potential, not serving their needs, or outright broken and need fixing. Set the return appointment for the same time, same place, one week from today. Of course, you’ll need to keep their documents for your research which, incidentally, reinforces the element of trust and assures their return visit. Then stand up, shake hands, look them in the eyes and thank them for sharing their lives with you.

You have done more toward closing annuity sales than anything you could have told them.

By: Craig E. Hemke

President and Founder of BuyaPension.com

As Americans struggle with the complex challenges of retirement income planning, more and more are turning to Single Premium Immediate Annuities, or SPIAs, for help in managing the risk of outliving their retirement assets. SPIA sales have been relatively flat for years, however, sales have recently been growing at a 25-30% annual rate, reaching in $2.4 billion in 2008. This demand growth will most likely continue for the foreseeable future. By now, most Americans are familiar with the risks inherent to investing. Market risk, inflation risk, interest rate risk and the like are all items that investors have grown accustomed to managing. These risks are still present for the retired investor but they are joined by a new risk, longevity risk, which is the possibility that you might outlive your assets.

An investment in a SPIA is one of the few steps an investor can take to manage this risk. Longevity risk is often misunderstood. Though many have seen articles and studies on life expectancy, longevity is something completely different. Life expectancy is defined by the expected life span of a person born today. That life span is often limited by childhood illness, disease and accidents.

Longevity is defined by the average lifespan of someone who has already survived to age 65 and thus has a much longer expected life span. In fact, current actuarial tables indicate that a healthy 65-year old couple has a 50% chance that one person will survive all the way to age 92. There’s even a 25% likelihood that one person will make it to 97! Stocks, bonds and certificates of deposit are all helpful investment tools for the average retiree, but none of these investments can truly guarantee income for 30-40 years of retirement. However, an immediate annuity can.

How does an immediate annuity work? In exchange for a single, lump-sum investment or premium payment, an insurance company will guarantee an investor a fixed income payment for life. Similar to a defined-benefit or pension plan, this income is steady, predictable and guaranteed by the insurance company to continue for the entire lifetime of the investor. The frequency of the payments is determined by the investor, as well, and payments may be received monthly, quarterly or annually. The investor may also decide the level of beneficiary protection they would like.

These options include: Life or Joint Life Only. With this option, payments are guaranteed to the investor for as long as they and their spouse live. However, once the surviving spouse passes away, the income payments stop and nothing is paid to beneficiaries. Life or Joint Life with Period Certain: This option also guarantees income for life but it includes some beneficiary protection. Let’s say, for example, an investor purchases a Joint Life with 20-Year Period Certain contract and then the investor and their spouse both pass away after only receiving 10 years of income. In this case, the stated beneficiaries of the contract will receive the remaining 10 years of guaranteed income, thereby fulfilling the contract’s 20-year income component.

Life or Joint Life with Cash Refund: This option guarantees income for life, too, but comes with a different form of beneficiary protection. In this example, let’s say an investor purchases a Joint Life with Cash Refund contract for $200,000. Then, both spouses pass away after receiving just $50,000 in income. With this contract, the insurance company will return or, “refund”, the $150,000 difference to the contract’s stated beneficiaries. Other annuitization options are available but the three listed above are, by far, the most popular. Besides guaranteed lifetime income, SPIAs have other advantages, too. Most prominently, SPIAs can have tax advantages when purchased with non-qualified, or after-tax, dollars. Depending on the age of the owner, income from a SPIA can be as much as 70% tax-free because a significant portion of your income each month is considered a tax-free, return of principal. For those in high tax brackets, or those who fear higher future tax rates, this tax-free component can be quite attractive. Combining these factors, it’s easy to see why SPIAs are the fastest growing segment of the annuity market. With more Baby Boomers retiring every year and with continued product innovation and tax rate hikes, it’s also quite likely that this trend will continue for many years to come.

Mr. Hemke is a twenty-year securities and insurance industry veteran. He founded BuyaPension.com, an online sales site for individuals looking to research and purchase single premium immediate annuities, in 2008.

When it comes to annuity appointment setting, the most effective technique by far is the Drop-By System. However, if you’ve totaled your car, broken both legs and must resort to a phone call, I’ve always taught my agents that the best way to engage your prospect on the phone is to open with a statement that is anything but your typical warm fuzzy, “How are you today?” Your statement must (1) make them sweat a little and (2) pose a problem which is at the same time a benefit of owning an annuity (without saying the word ‘annuity’). Note: This formula works with any product.

For example, “HELLO, MRS. JONES? MY NAME IS _______, FROM THE _____ AGENCY DOWN THE STREET, AND I’VE BEEN TRYING TO REACH YOU BECAUSE I FIND THAT SOME OF MY RETIRED CLIENTS ARE PAYING INCOME TAXES ON THEIR SOCIAL SECURITY, AND THEY DON’T NEED TO. I’M A FINANCIAL ADVISOR IN THE AREA AND I CAN SHOW YOU HOW TO REDUCE OR ELIMINATE INCOME TAXES ON YOUR SOCIAL SECURITY. I’LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE’S NO CHARGE. I’VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 ON THURSDAY AFTERNOON BE BETTER FOR YOU?”

Your prospect’s responsibility at this point is to say, “No thanks, I’m not interested,” or maybe something not so kindhearted. You’ve just interrupted her world. However, you’ll do much better at annuity appointment setting if you understand that a ‘No’ is simply a latent reaction from childhood. In our formative years, the one word we heard more than any other was the dreaded, “No!” It’s what we got almost every time we asked for something:

“Mommy, can I have a cookie?”

“No.”

“Daddy, can I drive the car?”

“No.”

Your job as a professional salesperson is to understand that humans are hardwired to respond to practically any proposition with the word, “No.” It’s how our circuits work. Negative responses can range from a simple ‘no’ to a blistering harangue. Your steadfast, automatic response must be to pull the plug, short-circuit the connection, neutralize the way your prospect’s mind works.

Try the old ‘feel, felt, found’: “I CAN CERTAINLY UNDERSTAND HOW YOU FEEL, MRS. JONES. A LOT OF PEOPLE I TALK TO INCLUDING A FEW OF YOUR NEIGHBORS FELT THE SAME WAY AT FIRST. BUT AFTER THEY UNDERSTOOD THE PROBLEM AND HOW SIMPLE THE SOLUTION WAS, THEY FOUND THEY WERE SAVING HUNDREDS OF DOLLARS A YEAR IN UNNECESSARY TAXES.” By pouring water on your prospect’s natural resistance, you weaken their response and, at the same time, maneuver the phone call into a back-and-forth conversation.

Now you’ve earned the right to continue: “…YOU SEE, WE FIND THAT A LOT OF PEOPLE SIMPLY DON’T REALIZE THAT A PORTION OF THEIR ESTATE THAT THEY WANT TO LEAVE TO THEIR CHILDREN AND GRANDCHILDREN WILL BE EATEN UP IN PROBATE COURT, AND IT DOESN’T HAVE TO BE THAT WAY. I’M A FINANCIAL ADVISOR IN THIS AREA AND I CAN SHOW YOU HOW TO FIX THAT. I’LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE’S NO CHARGE. I’VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 THIS THURSDAY AFTERNOON BE BETTER FOR YOU?”

Get ready for it. Here it comes again: “No thanks,” she says, “we’ve already got a financial advisor who’s been with us for years.” Mrs. Jones is only playing her part in this annuity appointment setting rivalry. At the same time, she’s telling you exactly how she wants you to get her to say yes. Pay attention to her words. This time you’re going to, first, neutralize her objection, then use her exact words to identify “… THE PEOPLE WHO BENEFIT THE MOST FROM OUR SERVICES.”

For example, “I CAN CERTAINLY UNDERSTAND HOW YOU FEEL, MRS. JONES (neutralize). HOWEVER, THE PEOPLE WHO BENEFIT THE MOST FROM OUR SERVICES ARE THE ONES WHO ALREADY HAVE FINANCIAL ADVISORS. SEE, A GOOD FINANCIAL ADVISOR, JUST LIKE A GOOD DOCTOR, WILL OFTEN ADVISE YOU TO GET A SECOND OPINION. I’M A SPECIALIST IN THIS AREA AND I CAN SHOW YOU HOW TO AVOID THE EXPENSE AND DELAYS OF PROBATE. I’LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE’S NO CHARGE. I’VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 ON THURSDAY AFTERNOON BE BETTER FOR YOU?”

At this point, if you don’t hear a click and a dial tone, you may hear a slight wavering in her voice. Her “We-already-have-a-financial-advisor” line worked with the last salesperson. What’s up with you? Now she has to either think about her response or default to the old standby, “I’m not interested.” If she responds with anything but “I’m not interested,” she’ll be telling you how she wants you to get her to say yes. These responses can include,

“I’m too busy right now.”

“Our son-in-law takes care of those things.”

“We’ve already got all the insurance we need.”

“I don’t have any money.”

“I never accept telephone solicitations.”

You must stay one step ahead of your opponent by preparing your script for all possible scenarios. Sit down and write them out in your own words. Use the above script as an outline and insert the gist of her response in the appropriate places. Then follow up with another problem for her to worry about which is also a benefit of owning an annuity. Don’t be afraid to get creative. Annuity appointment setting is a game of wits and circular logic. The more you differentiate yourself from the last three telemarketers she sent to the insane asylum, the more successful you’ll be at appointment setting and, ultimately, selling annuities.

Finally, if you’re dealing with an indifferent, uncreative type who just can’t come up with anything but, “I’m not interested,” try this:

“MRS. JONES, IT’S OKAY IF YOU’RE NOT INTERESTED. I JUST WANT TO ASK YOU ONE QUESTION. WORK WITH ME HERE. IMAGINE THAT EVERYTHING YOU’RE WORTH YOUR HOME, YOUR SAVINGS, YOUR INVESTMENTS, EVERYTHING WAS GOING TO BE TAKEN AWAY FROM YOU FIRST THING NEXT WEEK. AND LET’S SAY I CALLED YOU JUST LIKE I’M DOING TODAY, AND TOLD YOU I COULD PROTECT YOUR FINANCIAL FUTURE IN A RESPONSIBLE WAY SO THAT NONE OF THOSE BAD THINGS WOULD HAPPEN. WOULD YOU STILL TELL ME YOU’RE NOT INTERESTED, OR WOULD YOU LET ME SIT DOWN WITH YOU AND SHOW YOU HOW IT WORKS BEFORE ANYTHING LIKE THAT HAPPENS?

YOU SEE, WE KNOW THAT MANY PEOPLE, MAYBE EVEN YOU, HAVE A LOT OF THEIR LIFE’S SAVINGS SITTING IN THE BANK, OR IN STOCKS AND BONDS, OR IN REAL ESTATE, WHERE IT CAN BE ATTACHED BY A JUDGEMENT IN A CIVIL COURT OF LAW … AND IT DOESN’T HAVE TO BE THAT WAY. I’M A FINANCIAL ADVISOR IN THIS AREA AND I CAN SHOW YOU HOW TO FIX THAT. I’LL SPEND 10 TO 15 MINUTES WITH YOU UNLESS YOU KEEP ME LONGER. THERE’S NO CHARGE. I’VE GOT WEDNESDAY MORNING AT 10:00 AVAILABLE, OR WOULD 2:00 THIS THURSDAY AFTERNOON BE BETTER FOR YOU?”

Get the picture? You need to eat, sleep and breathe annuity appointment setting.

The advantages that you receive by selling annuities

Making sales are an important source to make a profit by selling and making opportunities in the case of sales for financial advisors. You could opt for annuity sales in the case of lump-sum charge when the clients want to make large purchase in the case of properties and big investment. In this way, you will be able to diversify the assets and also, to receive profits.

The reasons you might have for availing the annuities

The first one would be to install continual funda. This means that the selling of annuities is one popular reason, under which the clients are guaranteed to receive one stream of funds in their lifetime and thus, the clients could purchase annuity plans or then, probably sell to derive profits.

The inheritors can benefit from purchasing annuity plans. This will secure their future financially in the name of beneficiaries. Also, when the person who is purchasing the annuity dies, then the people beneficiaries will be able to get hold of the profit from the plan. That way, the inheritors become secure financially.

Also, making purchases with annuity can form tax angles. The interest that you can receive from the annuities will not be taxed and therefore, the money will not be withdrawn until the taxes are paid. The taxes that were deferred will be paid for throughout the time that the payout period will be lasting.

The different cases of annuities

The annuities are deducted on the type of deposits paid by the clients inside the annuity.

The annuities can be divided into flexible premiums, by allowing the policyholders in order to deposit some contributions during the duration of one annuity contract.

Also, there is the single annuity that is premium, by allowing one deposit during the period that the contract will last.

Judging by the payout, you will receive deferred annuity, which means that you do not have to pay immediately for it, because the payment will begin after one year calculating from the date stipulated in the contract.

Moreover, there is the immediate annuity, which means that immediate payment is required, and it is generally considered to be until one year.

Judging on the type of money that will be placed in annuity contract, you will have non qualified annuity, which means that the money will be placed into the contract and then it will be taxed. And then, there is the qualified annuity, which means that the money put into the contract will not be taxed.

Also, you might divide the annuity into the interest you will receive. There exists indexed annuity, which means that the interest will be offered on outside index. Another type of annuity is the one with fixed rate, which is that the interest rate will be fixed and that you will receive a guarantee for a small amount and over the period of the contract. Also, there is the type of annuity called variable deferred, which means that the purchaser will be offered the option to participate in the fund investments.

The sides that will be present in he contract will be the contract owner, which is represented by the person by persons or legal entity purchasing the annuity. The person can acquire all rights possible for legal contract. The person might need to pay premiums, and then choose some policy features which are present into the contract and then, the person might withdraw the the type of annuity that will surrender or the withdraw when the annuity is going to be bought. Moreover, the person that has the possession of the annuity might have the right to choose whether to sell the annuity or not and he or she could impose the terms of the contract.

The annuitant is the person who will buy the annuity and then will hold annuity contracts. In the unfortunate case that the annuitant will die, then the profits will be given to someone who has been designated as the beneficiary. The annuitant needs to be living , when the rights for contract will not be granted to the person. On the other side, the owner and the annuitant could be the same person.

The beneficiary represents the person or one legal entity who will receive the profits from annuities in the case that the annuitant will die then the beneficiary will have when the annuitant will die. Therefore, the case will be solved in case something happens.

The definition of an annuity

The annuity represents one sort of contract or even agreement between several parties in which one or more clients receive regular sums of money from the payments that they have made in the past. The annuity can also be regarded as an investment ensuring that persons can receive some form of income for many years to come.

Types of annuity?

The annuity comes in different flavors in that it can be flexible, the premium or single, judging by the deposits made and the number of deposits over the years, by deferred or by immediate payment, judging by the time payment is set to start, by the money that was paid for them and the amount of taxation for that annuity as well as judging by the way the payments are made, whether they will come with interest or whether they will be accounted as being fixed or indexed.

How can you accomplish  success through  selling annuities?

For one thing, in order to maintain success for long periods of time, you need to obtain correct values in the system and be able to have some degree of success in the past. By creating the  value for yourself or making a name in the market, you will be able to attract customers to come to you and thus, you will be able to have customers that you can offer your services to. To do that, you might need some good referrals from people you have worked with in the past as well as advertisements in the media to make yourself known. Moreover, endorsements of this type will ensure that you can be proved to provide good quality services to the customers and that you will be able to build a lasting relationship between yourself and your clients.

How to double check your system of solutions?

Success will be guarantee when you have looked over the following:

-ensuring that you have a constant number of people that are scheduling appointments with you;

-ensuring the customers aren’t accompanied by their own financial advisors, because you need people who do not have financial advisors, seeing the sales flourish after you have put effort to make it work, seeing that the customers ask for future commitments or come over to ask for more guidance.

Next, the question is how to manage to devise  correct systems to work. In this case, you might want to ensure that you will find a good formula so that you can attract prospects that other sellers do not know about and that you cam offer a system that is of good quality.

Another thing to do would be to narrow the area of the prospects you are focusing upon by having them not be accompanied by advisors. Therefore, you will be able to ensure that the clients are there to look after your guidance and that there is nobody around to keep contradicting you. Moreover, it is a good idea to have your attention focused on a certain branch on the market.

Improving your sales through sale pitches might also attract a few more customers to your business and this might convince people to apply for your services.

Do your job well, put effort in it so that the client can see that you are customers oriented and that you are able to carry commitments and deadlines and thus, make proof of your extreme service behavior. The clients might end up coming for more guidance, even after their contract with you has expired.

A few tips to ensure you are building a viable financial system would be to write down the business plans you have in mind. Then, set the goals that you are targeting and let the customer be aware of that. Next, you should start working on attracting more prospects to your business by organizing meetings and appointments with them. Remain cost conscious of the services that you are offering and do no overprice things.

Constructing plans ahead of time might save you some time and you will also be able to make good impression when you will be meeting new customers. Come up with ingenious techniques and ideas that will give your prospects a lot of choices from which to choose. Moreover, you should outsource the marketing options that you have in the case that business is not working for you.

Also, make sure you believe in what you are selling and most importantly, that you believe in yourself.