Annuities are one of the most misunderstood — and most powerful — tools in a client’s retirement plan. Unfortunately, most agents either overcomplicate the explanation, rush into a product pitch, or fail to connect the annuity to the client’s goals.
If you’re ready to stop sounding like a brochure and start closing annuity cases confidently, this guide is for you.
👨‍👩‍👧‍👦 First Rule: Sell the Outcome, Not the Product
People don’t buy annuities. They buy peace of mind, guaranteed income, and control over their retirement. If you open your pitch with terms like “MYGAs,” “caps and spreads,” or “free withdrawals,” you’re jumping too far ahead.
🧠Start with a story like:
“Imagine never having to worry about running out of money — no matter how long you live.”
Then walk them backward to how the annuity helps make that possible.
🎯 Discovery Script Framework: The 4 Retirement Pain Points
Ask questions that uncover emotional and financial concerns, such as:
1. Longevity Risk
“Have you thought about how long your money needs to last in retirement?”
2. Market Volatility
“How would another 2008-style drop affect your current retirement plan?”
3. Income Replacement
“When Social Security and pensions don’t cover everything, how do you plan to make up the gap?”
4. Control vs. Guarantees
“Are you more focused on growing your retirement funds — or locking in income you can’t outlive?”
🛠Pro Tip: Agency Engineer’s fact finder tools help you identify these gaps fast and tee up the right solution path.
đź“‹ Sample Annuity Sales Script (Fixed Indexed Annuity)
Intro:
“I work with retirees who want to protect their savings and create a predictable stream of income. Before we look at anything specific, can I ask a few quick questions about your goals and current retirement strategy?”
Discovery:
“Do you currently have any income that’s guaranteed for life outside of Social Security?”
“What would change if we could turn part of your nest egg into income you can’t outlive?”
Education:
“There’s a retirement tool called a fixed indexed annuity. It’s designed to grow your money when the market does well, and protect it when the market drops. You don’t lose money when the market goes down.”
“We can even structure it to pay you a monthly income, no matter how long you live — like a personal pension.”
Close:
“Based on your situation, I’d recommend an annuity that offers [benefit: income, protection, LTC rider, etc.], with zero market downside and a reasonable growth opportunity. Would you like to see what that looks like with your numbers?”
🤔 Objection Handling: What to Say When Clients Push Back
❓ “I heard annuities are expensive.”
“That’s true for some types. But many modern annuities have no fees unless you add optional benefits — and the value often outweighs the cost. Want me to break it down?”
❓ “I don’t want my money locked up.”
“That’s a valid concern. Most annuities allow access to 10% annually, and some offer full liquidity depending on the product. Let’s see what fits your comfort level.”
❓ “I’d rather keep my money in the market.”
“A lot of clients use annuities to protect part of their portfolio — the part they can’t afford to lose. You can still have market exposure, just with less risk.”
🧱 Advanced Strategy: The Annuity Income Gap Funnel
Use this 3-step framework with your tools:
- Illustrate the Gap:
Show their current income vs. future expenses using a visual tool (e.g., MoneyGuidePro). - Model the Solution:
Run side-by-side income projections with and without annuity income. - Frame the Decision: “Would you rather leave your retirement up to market luck — or lock in an income stream that’s guaranteed for life?”
đź› Pro Tip: Agency Engineer integrates with calculators, illustrations, and retirement planning tools to streamline this entire conversation.
🔥 Don’t Just Explain. Show the Impact.
If you’re just selling a product, you’re competing on price. If you’re solving a retirement problem, you’re building trust and long-term relationships.
That’s the difference between:
- A one-time sale đź’¸
- And a client for life 🏆
đź’ˇ Want Scripts + Tools That Convert?
🎯 With Agency Engineer, you get:
- Customizable annuity sales scripts
- Live illustration tools & calculators
- AI-powered objection response templates
- Follow-up automation for annuity prospects
👉 Get started here — or book a free walkthrough to see how top agents close annuity cases without sounding salesy.
