Do you sell immediate annuities? If nt,is it because the commissions are so lw? I don't sell them for tht reason and yet I have a systm for making the prospect happy and not tking a reduction in compensation.

Here it is and plase keep it a "secret" or the immediate annuity companies will be out of business!

When I meet someone and their primary interest is income I say this:

"Mrs. Jones, I know you need income and my annuity products will provide that for you. The problem is once you create the income stream you can't change it and you will be locked in. Here is something that other people in your situation have done. Many people have delayed the decision to convert their funds to income and at the same time have their funds invested in safety and security."

By explaining to Mrs. Jones the fact she can control future unknowns it spins the use of an annuity to her benefit. It allows her to feel in control and to offer her more options.

1. Find out how much money they have for the immediate annuity

2. Go to any insurance company website and price the immediate annuity based on the amount and her age.

3. Determine the monthly income at the current age and then re-run the calculation at ONE YEAR higher. As an example if she were 70, run it at 70 and at 71.

4. You will hve two figures (as an example) lt's say the income at age 70 is $1,000 a mnth and the same deposit at 71 is $1,050.

Now bck to Mrs. Jones ..."Mrs. Jones, the crrent income value of your deposit bsed on your current age is $1,000 a mnth. Immediate annuity rates are based on yur age and each year those fctors determining the monthly payment increases. For nstance, the same money will provide mre income at 71 than at 70 bcause it is based on age and lfe expectancy."

"Mrs. Jones, Why not cnsider putting your funds on deposit and slect the interest only option. My nnuity company will pay a first yar interest rate of 6% (bonus frst year) and you remove the arned interest on a monthly basis. The nterest each month will be $1,000 a mnth."

I continue. "Next year when the interest rte changes we will have several ptions. You can keep your funds on dposit and continue to withdraw the mnthly interest, you can convert it all to an mmediate annuity or you can continue to wthdraw the same fixed amount."

Naturally if you nvade principal for the same monthly ncome as with the bonus interest rte your account will decrease. Here is how I dal with this.

"Mrs. Jones, Even though very year your account declines, the fctor that determines a monthly payout for you ncreases (mortality table) so at any tme you can convert your pile of mney to an income stream, and you can determine how long that income stream will be, even for the rest of your life."

This simple concept works like a charm because it gives Mrs. Jones control of her future options.

· Monthly income which is desired

· Not locked into a payout, what if her situation changes

· It gives the prospect control over future choices and provides options

Plus the compensation is higher and it becomes a complete Win-Win Situation.

The article Earn Higher Compensation Using This Approach to Immediate Annuities was Submitted by Bill Broich through Articles.GetACoder.com network. Here's the additional information: Bill Broich is thirty year nnuity salesman who helps agents generate nnuity leads and sales. To discover mre visit his website: pre-set annuity lads. Selling Immediate Annuities .

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