How to Sell Fixed Annuities
Fixed annuities are guaranteed contracts issued by life insurance companies. To sell annuities you'll need to be licensed and contracted as an insurance agent or broker. Fixed annuities come in two types, immediate and deferred. Immediate annuities are similar to a pension in that they provide a guaranteed stream of income for life. Deferred annuities are similar to CDs and pay guaranteed interests rates, working as a savings vehicle instead of an income generation vehicle.
Other People Are Reading
Instructions
-
-
1
Get an insurance license. Insurance licensing is handled differently in each state but the processes and testing are typically similar. Most states will require you to take some sort of prepratory class before taking their exam. Exams will take about an hour and the cost of the exam and prep classes could be between $300 and $500 total.
-
2
Decide if you want to work self-employed or work as part of a firm. If you're going to be self-employed you'll need to obtain your own professional Errors and Omissions insurance and find insurance carriers to represent. If you join a firm they will help with those things but will want a cut of your commissions to help support you.
-
-
3
Learn everything you can about the annuities you have to offer. Annuity contracts can be complicated, so learn about their fees, interest rates and the financial strength of the companies issuing the contracts.
-
4
Begin prospecting for business. Fixed annuities are typically purchased by those in or nearing retirement. Target people age 45 or older and try to set as many appointments as you can.
-
5
Ask every client for referrals. Without a constant stream of new business coming in your pipeline you won't last very long as an annuity salesperson.
-
1
