How Agents Are Making Millions in the Fixed Annuity Market Right Now
March 4th, 2011 | Author: weissheiss
The rate of return on a bank C.D now averages a pitiful 1.5 %. A crumbled stock market sent a record numbers of investors to their financial advisors to buy fixed annuities.
According to insurance consulting firm Limra, fixed annuity sales jumped 74%, to $35.6 billion, the biggest increase ever for the three months ending March 31, 2009.
Despite the scandal with A.I.G investors understand that fixed annuities are still a safe investment. Fixed annuities offer a higher interest rates than bank CDs and most insurance companies have millions in legal reserves.
The primary reason fixed annuity sales are soaring is fear. The Standard & Poor’s 500-stock index has lost 23% in the past decade alone. This means investors who placed their money in the S & P would have lost 23% of their life savings. If these same people would have invested in fixed annuities with an interest rate of 9% they would be in a much better position today.
Right now equity indexed annuities have a bad name. When your client’s children find out that you are recommending an equity indexed annuity: their going to run to the family attorney like a miss guided scud missile. Fixed annuities on the other hand do not posses the negative stigma that equity indexed annuities have.
Seniors are slammed with sales pitches every day for fixed annuities and long term care. The best method I have found to market fixed annuities is a post card method to small to mid sized business owners.
The first step in the processes is to develop your list. I use a company called inside prospects. That said there a lot of ways to develop your list. What I have found that it is best to focus on sectors that are in industrial markets. The business owner that owns a machine shop is wealthier and quicker to make a decision than most seniors.
Here are the steps to my post card system in order:
1. Send out post cards to business sectors that are in industrial industries. Machine shops for example. Make sure the post cards are emotional and do not give out to much information. If you give out to much information the prospect is not going to call, and you may be out of compliance.
2. Once the post cards are returned follow up with the customers. Do not go right into a sales pitch. Ask your prospects about their business. Self employed people tend to be unemployable just like us. The reason I say this, is you are going to get all kinds of personality types and all of them will tell you what their concerns are if you let them talk about their business.
3. Set the appointment. Find out how much money your prospect lost in the stock market and the real estate market. Explain how you prevented your prospects from losing money in the market. People buy fixed annuities out of fear not for the interest rate.
4. Earn a client for life by educating them on how they can earn a good interest rate instead of losing their shirt in the market.
A lot of agents are getting out of the business due to higher compliance restraints and the negative attention the media has placed on financial companies. The reality is now is the best time ever to be in the fixed annuity market. Most agents don’t market fixed annuities and the ones that do are using seminars to market seniors that are only looking for a free lunch. By marketing annuities to small to mid sized companies in industrial markets you will be on the fast tract to 6 or 7 figure income in the next six months.
All of the top producers in our industry focus on a niche market. If you focus on a market that is not being contacted by other agents success is sure to follow.
Posted in Indexed Annuities | 
Tags: Annuity Market, Annuity Rate, Consulting Firm, Fixed Annuity, Insurance Companies, Investors, Reason, Stock Market