InsuranceNewsNet Magazine January 2011 : Page 30
B Y PA M EL A G R EEN 80 percent said they would prefer a 4 per-cent return with a guarantee against lost value compared to an 8 percent return that faces market risk. Interestingly, the study found that 53 percent formed their opinions about fixed annuities as long as 20 years ago, with 64 percent of them not having researched fixed annuities since then. Only 27 per-cent were aware of innovations in fixed annuities in the last decade. It’s best to ask up front, “How do you feel about fixed annuities?” If she says she knows nothing, you know you need to educate her. If she says she’s afraid that if she dies, the insurance company will get all the money, you can set her straight about that or any other voiced concern. Her frankness makes your job much easier. However, if she doesn’t give much away and says, “I’m pretty comfortable with them,” don’t be fooled; that may not be your cue to go straight to proposing a fixed annuity. Be ready to offer a detailed—but clear—explanation of the product. A pre-pared, memorized script is helpful. How-ever, I don’t do all the talking. Through-out my fact finding, I ask, “Am I making sense?” With the right questions, you can draw the prospect’s concerns out into the open and address them on the spot. But be prepared for mixed messages. Instead of directly expressing concerns about the market, the prospect may say, “Wow, things have really been crazy.” That’s your signal that you need to address that concern head-on. Also, prospects likely won’t tell you they don’t understand how fixed annui-ties work. That’s why you need to be clear from the start. I will often tell the pros-pect that it is rare for the general public to be knowledgeable about such a com-plex product. You want to make sure the prospect knows that if she doesn’t under-stand, then it’s your fault and you need to do a better job of explaining. Another way I anticipate prospects emotional responses is to match my selling style with their buying style. I’m I T’S A GIVEN that you want to pro-pose the most suitable product for your prospect’s needs. When she raises objectives like “guaranteed income” and “security,” you know that fixed annui-ties may be a good option for her. But you face the challenges of complex-ity, outdated prejudices and inaccurate information, which can make clients sus-picious or nervous about the products. It’s your job to debunk, educate and empa-thize. You can do this by asking pointed questions—and listening to the answers. Here is what you’re facing: in a 2010 Allianz Life Insurance Company of North America study titled “Reclaim-ing the Future: Challenging Retirement Income Perceptions,” it was found that almost 54 percent of Americans aged 44-75 were uncomfortable with the word “annuity.” Yet, of 3,200 people surveyed, 30 InsuranceNewsNet Magazine January 2011
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