InsuranceNewsNet Magazine January 2011 : Page 31
SMOKING OUT THE REAL OBJECTIONS | ANNUITIES a conceptual person, but I have a client who is very analytical. So, I bring in a col-league who thinks analytically to help bring the client into his comfort zone. As you work to do a stand-up job of explaining the details of the product and anticipating worries, be prepared to tailor your answers to her circumstance. For example, you know your prospect has a 15 to 20-year time horizon until retirement and that she is financially con-servative. Point out to her the features of the product and why you feel it is suitable for someone in her situation. Point out that she has said a guaran-teed income for life to cover basic needs is critical to her. Then, address how fixed annuities can meet those criteria as they offer guaranteed income contingent upon the claims-paying ability of the issuing company. If she comprehends and agrees, it will be easy for the client to understand your recommendation. Early in my career, I didn’t stress enough to a prospect the features of a fixed annu-ity for his circumstance. He was a retir-ing police officer and we discussed the option of placing his police pension in a fixed annuity. He opted out of this prod-uct because of the costs involved. I failed to discuss the value behind the costs and how that value could meet his needs in a way that his company pension couldn’t. The result? He missed out on a prod-uct that would have addressed his needs more completely. So, you think you’ve done a great job of addressing concerns, laying out a compli-To get to the heart of the matter, it can be helpful to ask, “ Are you already working with a financial professional who you trust? ” unearthing objections. There are still some unspoken matters, and it’s time to be more direct. Here are some of the things you can ask: • “Is there anything I’ve failed to explain?” • “Do you have any nagging doubts about the product that I can do a bet-ter job of explaining?” • Ask directly if her concern is about the product, the company, the market or you. Lack of confidence in those topics is typically the reason why a prospect will opt out of a fixed annuity. • Also, I don’t tell the prospect I’ll call her next week. Instead, I ask her point blank: “What’s keeping you from mak-ing your decision today? Is there some-thing you’re uncomfortable with?” • “What other concerns do you have that we need to talk about?” If you don’t ask these questions, she won’t tell you what’s on her mind, and she may miss out on a good option for her retirement plans. Remembering to be mind-ful that concerns are typically based on emotion; here is how you address concerns about: The product. People don’t like to admit that they don’t understand. They feel small. Be willing to admit that you may not have been as clear as you could have, and try to explain the product’s features in a different way. The company. Give a brief history of the company’s security and its experience in the product. Don’t overwhelm, but say enough to alleviate the prospect’s fears. Bring supporting documentation with facts and figures. You. It’s tough when you ask some-one, “What’s keeping you from mov-ing forward today?” and the answer is “You.” Think of times when you have not returned to a hairdresser or a mechanic because you were displeased with the quality of service. You never expressed your dissatisfaction, right? It’s hard for most of us to vocalize why we’re unhappy with a company. But, if you are the service provider, wouldn’t you like to know how you can improve? To get to the heart of the matter, it can be helpful to ask, “Are you already work-ing with a financial professional who you trust?” By listening to your prospect and put-ting her at ease, you can overcome many concerns. That’s not to say that every prospect becomes a client. There are times when you need to accept that the sale isn’t going to go through and move on. But you will have more success if you have a conversation, rather than give a lecture. You are helping to protect people’s financial futures. You are making dreams possible for them and their family. That’s a noble cause. You want to project confi-dence and empathy, and asking the right questions to uncover concerns will bring you closer to that goal. Pamela Green, CLU, ChFC, FLMI, is the Annuity Specialist at Sapient Financial Group, a general agency of Massachusetts Mutual Life Insur-ance Company (MassMutual). She can be reached at Pamela.Green@ innfeedback.com. It's best to ask up front, “ How do you feel about fixed annuities? ” If she says she knows nothing, you need to educate her. cated product’s features in a clear, con-cise manner. But when you’ve made your closing statement, the prospect says, “Let me think about it,” and you’re floored. That’s your signal that you haven’t done as good a job as you thought you did of Follow us online www.twitter.com/insnewsnet January 2011 InsuranceNewsNet Magazine 31
Publication List
