Have you been hearing a lot about annuities in the news? As more seniors reach retirement age and grapple with financial planning for their golden years, annuities are surging in popularity. Many of your clients may already be interested in annuities.
At the same time, there’s a lot of confusion around this financial product. You can help by educating your clients and prospects on the facts about annuities, including how they can provide retirement income and financial protection, as well as the potential drawbacks. And if you’re not selling annuities yet, consider adding this product to your portfolio.
Why Annuities Are So Popular
By 2030, an estimated 73 million Baby Boomers will have turned 65. Having lived through COVID-19 uncertainties, inflation, rising costs, and market volatility, fears about running out of money in their retirement years is what keeps many of them up at night. More than ever, this demographic seeks predictable investments that will protect them against losses and provide a reliable source of income to last their lifetime.
Annuities can be customized to suit a wide range of needs. There are many types, including fixed, variable, and indexed annuities. In recent years, structured annuities that offer upside growth and downside protection against losses have become popular. LIMRA says total annuity sales reached $432.4 billion in 2024, up 12% year-over-year, while fixed indexed annuities were up 22% and set a new sales record at $125.5 billion.
Now is the time to tap into this lucrative market.
Create Your Marketing Strategy
The most effective way to engage with your clients and prospects is to incorporate messaging into your existing marketing strategies. Share information on how annuities work and how they are an effective financial tool for retirement income. Encourage people to reach out to you directly for an individualized retirement planning review, where they’ll learn more about the different types of annuity products and how these products would work for them.
- Social Media
Using your social media accounts is one of the easiest ways to spread awareness of National Annuities Month. Post informative articles on annuities and why they are a good investment.
- Website
If you have a website, be sure to add a page about annuities under your products and services. (And if you don’t have a website, here’s how and why you should build one.)
- Email Signature & Newsletter
Include information about National Annuities Awareness Month in your monthly email newsletter. Let your clients know that you offer annuity solutions by adding a small note to your email signature, such as: Ask Me About Annuities!
- Personal Phone Calls and Emails
Phone calls and personal emails are a great way to follow up with existing clients who have shown an interest in annuities in the past. This will give you the chance to have an in-depth discussion about their needs.
- Create an Annuity Specific Marketing Flyer
Use flyers to promote annuity products. Attach the flyer to your email communications, post it on social media, hand it to clients during meetings, and use it for targeted mailings. NAFA has fliers available here.
Client Education Is Key
Your product knowledge and expertise will play a crucial role in your sales success. Whereas many of your clients may have heard of annuities, they may not understand how annuities work. An annuity sales pitch should cover all the factors that may impact a client’s decision, including the different types of annuities and the advantages and disadvantages of each.
Annuities give clients the peace of mind that they will not outlive their money. However, annuities are not for everyone. A thorough needs assessment will help you determine if an annuity is a good match for clients based on their age, health, income, risk tolerance, and liquidity needs.
WAP Can Help
Before you can sell annuities, you must be licensed in your state and must complete any required certifications from the annuity companies you represent. Western Asset Protection can help you get contracted with insurance companies to sell annuities. Our experienced team will help you take your business to the next level. Contact us today.