Closing More Annuity Sales Prospects – Keep it Simple Stupid

The close is the simplest part of the whole process if you have done one thing. Completed a Fact Finder and understood the feelings of the prospect. The sale is expected once a Fact Finder is completed and the need is understood. Listed next is a copy of my presentation explaining the close and how…

The close is the simplest part of the whole process if you have done one thing. Completed a Fact Finder and understood the feelings of the prospect. The sale is expected once a Fact Finder is completed and the need is understood.

Listed next is a copy of my presentation explaining the close and how I transcend to the sales.

This is the presentation explained in the previous lesson.

Summary of Estate Plan

for

Mr. and Mrs. Jim Jones

Thank you for the opportunity to work on your plan. I have looked at your personal situation, enclosed current reports and made suggestions I think may benefit your goals.

Your current retirement monthly income from social security and Boeing pensions is $ 3,400. You are currently removing $ 600 from your IRAs.

Your current income of $ 4,000 is the needed and desired goal.

You have a LTC policy with Bankers Unlimited Assurance Company with premiums of $ 230 a month. I have enclosed current ratings for you from AM Best and Company

Your IRAs are invested in the Delaware Family of Mutual Funds (now owned by Lincoln Financial Group). I have enclosed current reports for you.

Since your IRA accounts are important to you for retirement security, I suggest you transfer them to a guarantee Equity Linked Indexed Annuity.

I have enclosed the benefits you can enjoy with this change. It can be accomplished without any tax liability. (list of benefits)

Once I get to the “list of benefits” I say this. “Mrs. Jones, I have a list of benefits you could enjoy by making this change.” I then review the benefits with her and associate them with her personal situation.

My close?

Simple. I would then get the paperwork and ask her who she would like t name as her beneficiary.

Here is the list of advantages and disadvantages I use. Some remarks in red.

Advantage of Tax Deferred Annuities

1. Tax Deferred Growth. The interest earned is not taxed until it is touched. Your funds grow tax deferred. (no tax until touched, tax liability controlled by owner)

2. Safety. Annuities are among the most guaranteed and safe investments available. (safe and secure, if they already own an annuity, I explain about State Guarantee Association, here I tell them that annuities are the most boring product on the planet … good line, they always respond))

3. Avoid Probate. Annuities transfer to a beneficiary without the need for probate. (no fees direct to beneficiary)

4. Income. At any time, annuities can change from a savings or accumulation vehicle to an income vehicle. Annuities can provide an income that can not be outlived. (safe secure reoccurring income)

5. Estate Planning. Annuities are used in estate planning to help protect assets in the event of a long-term care situation.

6. Interest Income. Interest is available for income any time after the first 30 days of the deposit. The interest can be withdrawn monthly, annually or quarterly.

7. Death Benefit. Your beneficial always receives the full account value from the annuity immediately. (immediately and without need for probate)

8. Fees. No contract fee or sales contracts.

9. Comparison. Interest rate on annuities is usually higher than bank CD's or other fully guaranteed products. (historically for 90 plus years)

10. Access. Unlike bank CD's, you have access to your funds during the interest earning time period.

Disadvantages of Tax Deferred Annuities

1. Penalty for early withdrawal. During the guaranteed period, if you withdrew more than the contract allows, a penalty is imposed. This penalty can be voided by using the contract as an income (pension payout) or death. You can always withdraw 10% of the account value annually without penalty. (if you do not allow the insurance company to hold your money, you can not enjoy these benefits)

2. Early Access: Any access to funds in a tax deferred annuity before age 59 can can be subject to a tax penalty of 10%. (not for under 59 1/2 … they will say that is nt me, ends on upbeat note)

The Presentation is Important to Making an Annuity Sale – But, it Must Be Simple

I am often asked how I present the information to set up the close. I have one rule that I have used for years, this rule has allowed me to stay focused and to keep my prospect focused. KISS …. Keep It Simple, Stupid. Early in my career I was taught this concept and it…

I am often asked how I present the information to set up the close. I have one rule that I have used for years, this rule has allowed me to stay focused and to keep my prospect focused.

KISS …. Keep It Simple, Stupid.

Early in my career I was taught this concept and it has been the backbone of my selling approach. Simple sells and complicated does not. My presentation is simple and it normally takes me less than 20 minutes to prepare.

Why?

Because all I do is in a one page presentation repeat back to my prospect in writing what they told me about how they feel during the Fact Finder. I then use any third party information as supporting documents which outs reference material away from me personally. Sources could include Morningstar Principia Pro, MSN Money, Moody's and many others. I allow these sources to assume responsibility for content.

Here is an example of a typical presentation piece. I marked in red where I used outsource information.

Summary of Estate Plan

for

Mr. and Mrs. Jim Jones

Thank you for the opportunity to work on your plan. I have looked at your personal situation, enclosed current reports and made suggestions I think may benefit your goals.

Your current retirement monthly income from social security and Boeing pensions is $ 3,400. You are currently removing $ 600 from your IRAs.

Your current income of $ 4,000 is the needed and desired goal.

You have a LTC policy with Bankers Unlimited Assurance Company with premiums of $ 230 a month. I have enclosed current ratings for you from AM Best and Company. (AMBest ratings from the internet)

Your IRAs are invested in the Delaware Family of Mutual Funds (now owned by Lincoln Financial Group). I have enclosed current reports for you. (Morningstar reports from Principia Pro)

Since your IRA accounts are important to you for retirement security, I suggest you transfer them to a guarantee Equity Linked Indexed Annuity.

I have enclosed the benefits you can enjoy with this change. It can be accomplished without any tax liability.

Find the Need to Generate Annuity Sales, Need Selling Means Annuity Sales

The Fact Finder will tell you how a prospect feels. The feeling answers found in the fact finder will show you the need. The need could be inflation concerns, income, safety and security, guarantees, almost anything can be transformed from a feeling to a need. There is an old story about selling that explains the…

The Fact Finder will tell you how a prospect feels. The feeling answers found in the fact finder will show you the need. The need could be inflation concerns, income, safety and security, guarantees, almost anything can be transformed from a feeling to a need.

There is an old story about selling that explains the “need to know the need.” It is about a young salesman who was learning the craft from an older professional. The young salesman said after an observation of the older salesman. “You are so good you could sell ice cubes to an Eskimo!”

The older pro responded: “That is unrealistic because an Eskimo would have no need for ice cubes.

In that simple explanation lays the whole concept of “needs” selling. We as agents are so eager to explain our newest product that we misplace the concept of what need the prospect really has. We may want to explain the benefits of the latest and greatest equity linked indexed annuity when the need may be for life insurance or a 3 year fixed interest annuity.

You must know the need before you can provide any recommendation. Typically needs will fall into one of three categories. These categories are based on how a person's life interfaces with their assumed goals. In other words, someone who is 60 and still has not accrued enough retirement money may have a greater concern for safety than further accumulation.

Accumulation needs are defined as a savings goal to achieve a future financial goal, such as saving in an IRA for retirement income. The motivation to accumulate funds for future use could include children's education, buying a car, retirement or many other choices. Accumulation needs do not have to be long term as an example saving for a new car would be less than long term.

Retirement needs could be defined as a financial need to provide a fund to support life after retirement. When we retire, our pension or social security benefits begin but our earned income ceases. The cost of working at a job decrements but medical expenses could increase.

Protection needs can be defined as financial obligations that need to be fulfilled upon death or disability. These could include probate expenses, wills, trusts and income and health concerns that could arise from disability.

The factual side of needs is learned in the Fact Finder and the attachment of those needs to the personal feeling of the prospect must be developed and understood.

Be Smart, Become a Celebrity, Create Your Own Radio Show, Generate Constant Annuity Lead Flow

Annuity agents: Be smart and get control of your own marketing and manage your lead flow by creating your own radio show. If you are not familiar with radio, it can be intimidating. It really si a matter of experience and understanding he process. One way to short circuit the process is to use a…

Annuity agents: Be smart and get control of your own marketing and manage your lead flow by creating your own radio show. If you are not familiar with radio, it can be intimidating. It really si a matter of experience and understanding he process. One way to short circuit the process is to use a “turn-key” system where the actual work is outsourced to professionals. Creating your own annuity radio show is much simpler than you might expect.

The broadcast is through a special microphone attached to your computer, the script is provided, the show is recorded, a professional sound engineer converts it to radio quality, the media specialist finds the best radio spot and the show is broadcasted. Leads are sent directly to you and the radio “celebrity.”

Leads are captured by our answering system 24 hours a day, seven days a week. The leads are transferred via the internet to you immediately and without any delay. If it is not possible to make an appointment immediately, the lead is placed in our special drip system which keeps in contact with them until the timing is right for a meeting.

You should expect about 5 callers per show which will be 20-25 leads per month. Additional leads are easily available by increasing the amount of radio time and by adding more stations to air your show. Costs vary depending on regions and demographics but an average of $ 2,000 to $ 2,500 a month would be a very reasonable budget.

Your own radio show will provide you with a constant flow of leads, will establish you as a local “celebrity” in your marketing area and allow you to completely outsource the whole process to a professional organization.

IRA Management – Maximize Your Client’s Options and Move That Money and Make That Sale

When an employee retires with an intact 401 (k), the funds can be moved to a self directed IRA without tax liability. During the accumulation process at the time the employee is working, the goal is growth. At retirement the goal can be much different such as preservation of capital and the stronger need for…

When an employee retires with an intact 401 (k), the funds can be moved to a self directed IRA without tax liability. During the accumulation process at the time the employee is working, the goal is growth. At retirement the goal can be much different such as preservation of capital and the stronger need for safety and security becomes much more important.

The use of an annuity in an IRA can help your client obtain the necessary income, safety and security desired at this stage of their lives. An annuity contract contains a provision called “settlement options” which include a guaranteed table of factors in determining the minimum amount of income that will be paid. I always contact the insurance company to what their current rates are and show the client the range of income possible.

I have found that many people feel very comfortable investing their retirement packages in insurance companies because of the guarantees these contract provide. The term I use is “safe, secure, reoccurring” income. I explain to them that they can spend all their money every month because it comes again the next month. The concept of having an income that they can never exceed helps reduce stress and provides a sense of security.

It is important to fully understand the individual needs of your prospect before making any recommendations. While annuities offer safety and security, there are situations when tan annuity may not be the best option. The choice for an annuity should be made only after a complete and thorough fact finder is completed and then when a full understanding of the client's needs are understood.

Insurance Agents – Their Role, Values and Ethics

Insurance is a growing business in India. Insurance is sold by insurance agents. The role of agents are vital. They are responsible for the reputation of the company they are working for and they also have their obligations towards their clients. The IRDA or the Insurance Regulatory Board of India has laid down a code…

Insurance is a growing business in India. Insurance is sold by insurance agents. The role of agents are vital. They are responsible for the reputation of the company they are working for and they also have their obligations towards their clients.

The IRDA or the Insurance Regulatory Board of India has laid down a code of conduct for the agents. Let us discuss some of the code of conducts.

An agent can not hide facts while selling a policy. He has to be transparent to the customer.

An agent can not magnify the benefits of a policy to the customer.

He is responsible to properly explain the nature of a policy to the customer as that will help the customer to take an informed decision.

An agent can not hide facts from the company on behalf of the customer in order to sell a policy. He is required to be fair to both the customer and the company while a policy is being sold.

Insurance is mostly for protection purpose. It involves long term dedication on behalf of the customer. An agent can not sell a policy by telling that insurance is a short term contract. He is liable to explain to a customer that insurance is a long term contract. Even in case of ULIPs, an agent must explain that they are long term contract although ULIPs are a form of investment coupled with insurance benefits.

An insurance agent is the sole contact point between a customer and an insurance company. So he must be fair and ethical while selling a policy as that will also prove to be beneficial to him.

Insurance Sales Training – Is it Important?

Zig Ziglar put it best. He said “You were born a winner. But to be a winner you must believe you're a winner, prepare to win, and expect to win.” I believe that every person that enters into the sales profession is already a winner. Stepping out of a comfort zone of a nine to…

Zig Ziglar put it best. He said “You were born a winner. But to be a winner you must believe you're a winner, prepare to win, and expect to win.” I believe that every person that enters into the sales profession is already a winner. Stepping out of a comfort zone of a nine to five job to move into a career, often consisting of commission can be a scary proposition. The rewards however can be huge. The ROI in sales in unmatched in other profession.

Preparing to win is one of the steps too few people actually take. Doctors and Lawyers realize the trade off of learning and high paying careers. They know that in order to get to the life style they wish to have, it will cost them something. Doctors spend four years in college followed by another set of years depending on their chosen specialty and then have hospital rounds and on the job training. The shear determination to learn what they need to know, to operate in their profession profession is a sacrifice in time. Lawyers make the same sacrifice of time and learning.

In sales, most organizations including a great deal of Insurance companies have the same training. The training consist of “here is your sales kit, we want to wish you the best of luck.” I have been in the insurance arena for 25 years. I have seen countless agents come and go. When asked why they chose to leave what could be the most lucrative career? Most said the number one reason was “I had little or no training.” They knew all about the policies and the laws but these applications are not flying off the shelf to sell themselves.

The picture most insurance recruiters paint is within six months you will be on track to make well over six figures. The recruiters and the new agents miss the trade off. They have not learned what many in this industry have. In order to be successful, there is a trade off. The difference is sales training.

In the beginning you do not know what you do not know. Then you learn what you do not know and finally you know what you know. Then and only then are you ready to achieve the goals you set for yourself. The next logical question is where do I find this training? There are books at every book store and classes you can enroll into. We also offer these classes on line. The point is, get the training you require to know what you do not know so you can know what you know.

The final step according to Zig is, expect to win. Walk into every situation with the belief that you have already won. Move in the confidence that you know what you know and there is nothing stopping you. You were born a winner. Make a conscious decision that this day is a new starting point for you and nothing can keep you down. Make an investment in the most important commodity you have. Yourself.

Best P&C Insurance Companies – How Do You Find the Best?

In 2008, The Department of Insurance of the State of New York released a report showing the 40 P & C insurance companies that had the most complaints. We did an article about this previous. We showed the ten worst companies, the ones that got the most complaints. But we did not feature the ones…

In 2008, The Department of Insurance of the State of New York released a report showing the 40 P & C insurance companies that had the most complaints. We did an article about this previous. We showed the ten worst companies, the ones that got the most complaints. But we did not feature the ones that got the least number of complaints in New York, a tough insurance market.

Here is the list of New York's best P & C insurance companies as determined by the least number of complaints, higher number of complaints as you go down the list:

1. Long Island Insurance
2. Infinity Property & Casualty
3. Interboro Mutual
4. Tri-State Consumer Ins. Group
5. American International Group (AIG)
6. Safeco Insurance Group
7. Countrywide Insurance
8. White Mountains Group, OneBeacon, Esurance, Auto One Ins.
9. State Wide Insurance
10. Hannover RE Group, Clarendon National (no longer writing business)

You may find that some of these companies are only local or regional and that you can not do business with them where you live. But notice that AIG, Safeco, OneBeacon and Esurance are national companies that got fewer complaints.

It's not as easy to list a Top Ten Best P & C Insurance companies for America. We would have to contact all 50 state Departments of Insurance and find out which insurers had the least complaints. The National Association of Insurance Commissioners (NAIC) currently does not have any such report. In addition, complaints are not the only criteria that should be used to evaluate an insurance company.

Think about this statement, my friends.

The only thing that truly matters about your insurance is what happens when you submit a claim. It does not matter how good your agent is … or if the company sends you a calendar every year … or buys you dinner. It really does not matter if you pay a low premium or a higher premium. Claims handling is EVERYTHING !! Claims are about KEEPING PROMISES. When the insurance companies do not keep their promises, the complaints pile up!

Lowest premiums are not the only criteria you should use, either. Shopping for insurance is confusing and complicated. Determining if your quotes are “apples and apples” comparisons taking strict attention to detail.

You may need the help of a dedicated, experienced agent to determine your insurance needs and buy the right policy. Still, my recommendation is to shop broadly for your insurance needs. Get quotes from captive agents (who only write for one company) and independent agents (who write for multiple companies).

Getting quotes on the internet makes shopping for insurance very easy these days. But look for an insurance quote service that can give you competitive quotes PLUS strategies on submitting insurance claims that will help you collect thousands of dollars more in your claim settlements.

So, which insurance company should you do business with?

1. Choose a company that has an A + or A rating from the insurance rating services like AM Best.

2. Get multiple insurance quotes at least every two years, then choose the company which policies give you the most coverage for the least money. Do not worry about company loyalty. The companies do not care and neither should you.

If you are one of the unfortunate people who experience a loss of any kind, you'll need to know how to handle your insurance claim so that you maximize your recovery. You will need to know how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, check out the website shown below in the Resource Box.

You can win the insurance game if you have the right information. So go and win!

Personality Assessments – How They Can Help Your Insurance Agency Increase Sales

Selling insurance policies is never easy, and it gets even harder during a recession. Of course, there are many strategies that agency owners can use to attempt to increase sales, such as increased advertising and marketing promotions. However, in the end, it all comes down to your employees. Ads and promotions may lure customers in,…

Selling insurance policies is never easy, and it gets even harder during a recession. Of course, there are many strategies that agency owners can use to attempt to increase sales, such as increased advertising and marketing promotions. However, in the end, it all comes down to your employees. Ads and promotions may lure customers in, but your employees have to be able to close the deal. The key to selling more policies is to evaluate the team you have now. Discover their strengths and weaknesses, and you will be able to help them overcome their weaknesses and capitalize on their strengths to become more effective salespeople.

Most companies try to motivate their sales teams by periodically measuring performance and then offering incentives for the employees that meet or exceed target metrics. Measuring performance and offering incentives are important, but they are not enough. Even the most motivated employee will fall short of these goals unless he knows what he needs to change to produce the desired improvement.

Personality assessments can give your sales team a “competitive edge” by revealing their inner strengths and weaknesses. With this information, you can create customized coaching plans that help each employee learn how to be the best salesperson they can be.

When you choose a personality assessment to administrator to your employees, look for an assessment that is easy to administrator. A personality test that can be administrated over the computer and rated automatically is best for most busy insurance agents. Also, choose a personality test designed by a reputable company with a good track record of using their personality profiles to help businesses improve performance. This will ensure that you get accurate, relevant data.

To get the most out of a workplace personality testing profile, it also pays to consider the characteristics an employee needs to be successful in a given position. Some companies offer consultants who can help you design and implement a personality assessment program.

Personality assessments and reports will help you better understand your employees: What motivates them? What drives them? Once you know the answers to these questions, you can create customized development plans that will lead to increased sales and increased profits.

Fixed Annuity Marketing – Use the Fact Finder to Explode Your Fixed Annuity Sales Leads

Selling annuities is about understanding how a prospect feels. Once you understand how a prospect feels you can then decide if your annuity products can provide the desired benefits. Fact finding is a science but the implementation of it is an art. It is not the facts of a prospects life that is important but…

Selling annuities is about understanding how a prospect feels. Once you understand how a prospect feels you can then decide if your annuity products can provide the desired benefits.

Fact finding is a science but the implementation of it is an art. It is not the facts of a prospects life that is important but rather how the prospect feels about it that is important.

Asking quality feeling questions is really about being a good listener.

Selling is not as much about selling as it is about listening.

If you listen carefully you will be able to position the “Power” question to gain the desired results. The question which converts answers to feeling answers is simple and can be adapted to almost any statement made by the prospect.

Here is an example:

“Mrs. Jones, you said you had an IRA with Johnston Brokerage,

What is the purpose of the IRA (or insert topic) and what would you like it to accomplish? ”

That is the most powerful question you can ask anyone. The reason? The answer will always be a feeling answer. She will tell you if the money is important and for a purpose (which allows you to suggest the benefits of our products) or if it is warehoused money (which allows you to suggest the benefits of our products). Either way you will be in a position to explain how an annuity might be a good solution.

Here is an example: Let's say Mrs. Jones says that her IRA is there for use later in her life. The benefits of an annuity might be a response such as this.

“Mrs. Jones, since your IRA is important to you as future income, did you know you can guarantee a future income without any exposure to market volatility or losses?”

How about if the IRA has no planned use? Then there could be this answer.

“Mrs. Jones, did you know that the IRS will allow you to change your IRA so at some future date your heirs will inherit it completely tax free? And at the same time you could put in place guarantees that insulate your money from market volatility and losses. ”

Once you learn the “Art” of fact finding it will become second nature. The feeling questions will give way to actual question (“Mrs. Jones, what is the value of your IRA today?”) The actual questions allow you to tailor make a recommendation using annuity products.

I am often asked for a copy of my fact finder and frankly anything can be used or note taking once you have a little experience. Occidentally I use a legal pad or anything handy.