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Sales Opportunity – Fed Rate Hike Boosts Aged Annuity Leads Value

By Troy Wilson
Sales Opportunity – Fed Rate Hike Boosts Aged Annuity Leads Value Feature Image
4 minute read

Aged Annuity LeadsFor the first time in nearly a decade, interest rates are on the rise. A Fed rate hike isn’t good news for all, but it is really good news for aged annuity leads, life insurance leads, and you. The current climate offers a golden sales opportunity for sales professionals working these leads.

The Insurance World and Interest Rates

A recent Nasdaq/ article took a look inside the insurance industry and our symbiotic relationship with interest rate levels. As far as industry profits, things are still iffy:

Life insurers are known to be one of the largest beneficiaries of rising interest rates, but they may not get much support, at least in the near term, from the modest increase in interest rates by the Fed in the last couple of years. Neither the magnitude nor the pace of rate hike has the potential to measurably increase life insurers’ investment income that they need to meet policyholders’ future claims.

That’s because, for any gain, the rate-hike-driven improvement in income will have to more than offset the decline in yield on assets invested in. And the rate hikes so far are too small to fetch any significant benefit.

It’s true that the two fraction-of-a-percent Fed rate hikes we’ve seen over the last year or so haven’t helped industry investments much, not to mention variable annuity product values. However, that could be changing.

The Bond Yield Trajectory

Since the Presidential election in November, bond yields have been looking up. Experts say there’s an expectation of stronger economic growth and higher inflation. This is good news for insurance agents and annuities clients alike.

Nasdaq says that further economic growth could even fuel a new demand for life insurance and annuity products. The question for agents now is: how to make the most of it.

The Sales Opportunity

There was a great interview last month in ThinkAdvisor with sales guru Anthony Iannarino and some pieces of advice there really strike me as relevant to this situation.

When asked what financial advisors should do when the market shifts, Iannarino said he believes that the best time to call is as soon as there’s a change. That’s because a client’s first thought is often, “Why should I change?” he said. In other words, when there’s an opportunity that’s just become available, it’s a great time to talk to your clients and begin the annuities discussion.

Another piece of advice that stuck out to me — creating value by regularly sharing your ideas with your prospects:

The more you nurture relationships in front of an opportunity, the more you become known as someone who has really good ideas.

In other words, adding value to your client relationships means keeping them informed of opportunities. The current opportunity with bond yields beginning to pick up, and hence variable annuity product values on the upswing, is one great example.

One last piece of advice from this interview that I love is this: “All salespeople sell outcomes and only outcomes.” Iannarino elaborates:

People are trying to buy outcomes. They don’t buy drills; they buy holes. If they could buy the hole without the drill, they’d just get the hole. From the client’s perspective, it’s: “I don’t want to buy investment vehicles; I want to buy wealth. I don’t want to buy an annuity; I want to buy security in old age.”

I think this really gets down to it. Rising bond yields are a golden opportunity for annuity leads and particularly aged annuity leads. But these folks don’t want the annuity product itself — they want the financial benefit that product can provide.


So as you craft your email notice, ready your call list, or prepare your website lead magnet, it’s the outcome that clients are seeking. And this opportunity? Well, it’s an awfully good answer to those asking “why”.

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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