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What to Talk About When You’re Cold Calling Annuity Leads

By Troy Wilson
5 minute read

Cold Calling Annuity LeadsTo boost their bottom line, some insurance sales professionals are finding success cold calling annuity leads. When you consider that novice investors are dealing with increasing volatility on the open stock market, wages, wealth, and savings are down, and a large pool of Baby Boomers are crossing over into retirement, annuities look like a smarter investment. And they are.

Fixed indexed annuities (FIA) are booming. So if you’re prospecting aged annuity leads and looking to build your sales, here are 7 points to get the annuity investment conversation started with your clients and prospects.

1. Simple Investing for Non-Experts

As you know, professional investors cover both short and long positions. The only guarantee in the market is volatility. Explain to your prospects that the experts can make money no matter if stocks go up or down, but most average investors can’t. Expertise, knowledge, timing, and training are necessary to come out on top. By investing in fixed indexed annuities (FIA), those average investors can put the benefit of these expert financial resources to work on their money.

2. Safer Retirement Investing

Over the last couple decades, the S&P 500 has reached impressive peaks but also fallen into deep valleys. For some clients, it’s helpful to illustrate this dichotomy: During bull markets, stock owners made money, but during bear markets, they lose money. That may be fine for hardy investors with time on their side to win in the end. But it doesn’t make very good sense for someone on the cusp of retirement to put all their chips on the line. Explain to your prospects that with annuities, a client’s money never decreases, the account incorporates an automatic short, and has no market risk.

3. No Market Risk

Many novice investors are worried about risk. They’ve all heard the disclaimers that note investments carry risks, there’s no guarantee you’ll achieve the desired results, and so on. These folks may be especially interested in an annuity product. Be sure to cover how annuities have a built-in “short” selling system, meaning the client’s account doesn’t participate in the downside volatility of the market. They’ll want to hear that they have a guaranteed, locked-in gain and can’t lose any of their accumulated value.

4. Easy Pension Conversion

Many folks near retirement may be interested to hear about immediate annuities. Even those younger ones looking ahead to retirement may be interested in deferred annuities. Be sure to emphasize to your prospects that they can get a steady pension-like payment for life that’s simple, low risk, and tax efficient. Prospects may also enjoy knowing that they can convert their annuity account to pension income at any time. Emphasize that lifetime payment options exist, as do options to include a spouse.

5. Annuities Vs. Bank CDs

Many of your prospects will be far more familiar with bank-issued certificates of deposit (CDs) than they will be with annuities. Because your prospect better understands how they grow their money with CDs, they may be under the impression it’s a better investment. Simple is often good, but that’s not the same as saying simple is always better. While CDs are generally safe investments insured by the FDIC, their interest rates tend to be lower than annuities and CD returns are not insulated against inflation the way annuities are. Interest taxation is also a big difference, with annuities offering tax-deferred growth and earnings that are triple compounded (interest, interest on the principal, and interest on what you would have paid in taxes).

6. Fixed Penalty Rules

With the popularity of CDs, many folks may be aware of penalties for early withdrawal before maturity. This is one place where CD rules get more complex than annuity rules. Emphasize to your annuities prospects that, if they do become short of cash down the road, they may be able to withdraw as much as 10% of their principal (if not their interest) annually without taking a penalty. There are also annuity benefits for the death of a spouse or long-term care situations.

7. The Unique Guarantees of Annuities

While annuities aren’t insured the same way CDs and other bank deposits are, they are insured — by the insurance company that issues them. Knowing the financial health and track record of the insurance company usually works as a good reassurance for potential clients. Furthermore, annuities do guarantee income for life, and minimum guaranteed gains, even in a down market. By contrast, CDs are FDIC insured, but offer no guaranteed interest or gains should the bank fail.

Closing Thoughts

Annuities investments aren’t like other insurance or financial planning leads. Many prospects don’t know as much about them as they do certificates of deposit or whole life policies. Annuities are also tricky because the more detail you give a prospect, the more confusing the instrument can seem. However, if your sales conversation sticks to the primary features and benefits of annuities, as they relate to your prospect’s needs and goals, you are in a good position to add a powerful boost to your business.

Ready to get started with annuities? Fill your pipeline with a fresh supply of high-quality leads from The Aged Lead Store. You’ll find thousands of sortable aged leads, ready to boost your sales, whether your business is auto, life, health, Medicare supplement or homeowners insurance, annuities, auto warranty coverage, mortgage refinance, or solar installation.

About Troy Wilson

Troy is the CEO and founder of Aged Lead Store. He has been in the lead generation industry for over two decades. His blog posts focus on how to refine your sales process and get the most out of your insurance leads, mortgage leads, and solar leads.

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