Closing More Annuity Sales Prospects – Keep it Simple Stupid

If you have only done one thing, the close is the easiest part of the entire process. Completed a Fact Finder. Understand the prospect’s feelings. Once the Fact Finder has been completed and the need understood, the sale can be expected.

Below is a copy my presentation that explains the close and how it translates to sales.

This is the presentation that was explained in the previous lesson.

Summary of the Estate Plan


Jim and Mary Jones

We are grateful for the chance to work together on your plan. I have reviewed your situation and provided current reports. I also made suggestions that may help you reach your goals.

The current retirement income you receive from social security and Boeing is $3,400. You are currently removing $600 to your IRAs.

Your current income of $4,000 represents the desired and necessary goal.

With Bankers Unlimited Assurance Company, you have a LTC Policy with $230 per month premiums. I have attached current ratings from AM Best and Company

Your IRAs are now invested in the Delaware Family of Mutual Funds, which is now owned by Lincoln Financial Group. I have attached current reports for your review.

Your IRA accounts are vital to your retirement security. I recommend that you transfer them to a guarantee Equity Linked Indexed Annuity.

These are the benefits that you will enjoy from this change. This can be done without tax liability. (List of benefits)

When I reach the “list of benefits”, I say this. “Mrs. Jones,” I have a list with benefits that you can enjoy by making this switch. I review the benefits with Mrs. Jones and then associate them with her personal circumstances.

My closest?

Simple. The paperwork would be completed and she would ask me who she would like to name her beneficiary.

Below is a list of the advantages and disadvantages that I use. A few remarks in red.

Tax Deferred Annuities

1. Tax deferred growth. Interest earned is not subject to tax until it is used. Your money grows tax-deferred. (no tax until touched; tax liability controlled and controlled by the owner)

2. Safety. Annuities are one of the best investments that can be guaranteed. (Safe and secure, if they have an annuity already, I explain about State Guarantee Association. Here I tell them that Annuities are the most boring product in the world…good line, they always reply)

3. Avoid probate. Annuities are transferred to a beneficiary with no probate. (No fees directly to beneficiary).

4. Income. Annuities can be changed from a savings or accumulation vehicle into an income vehicle at any time. Annuities can provide a lifetime income. (Safe and secure recurring income)

5. Estate Planning. Annuities can be used to protect assets in the case of long-term care.

6. Income from Interest. Income is available at any time after the initial 30 days. You can withdraw the interest monthly, annually, or quarterly.

7. Death Benefit. The annuity’s full value is immediately paid to your beneficiary. (immediately, without probate).

8. No Sales Commissions or Contract Fees

9. Comparison. The interest rate on annuities tends to be higher than bank CD’s and other fully guaranteed products. Historical data for the past 90 years.

10. Access. You have access to your funds for the time you earn interest, unlike bank CDs.

The Disadvantages Of Tax Deferred Annuities

1. Penalty for early withdrawal. If you withdraw more than what the contract allows, a fine is imposed. You can get the penalty canceled by using the contract to earn income (pension payout), or dying. Annual withdrawals of 10% can be made without penalty. These benefits are not available if the insurance company holds your money.

2. Early access: Access to funds in a tax-deferred annuity prior to age 59 1/2 could result in a 10% tax penalty. (Not for those under 59 1/2…they’ll say that isn’t me, but it ends on a positive note).