How many indexed annuities do you own? Your answer should be at least “one” if you are recommending them to others. My belief is if you are selling them, you should own them. If you don’t, you are not credible.
When selling anything, it is important to be passionate about your product. Can you imagine a sales rep at a Mercedes-Benz dealer parking his BMW in the showroom? He’s probably not passionate about Mercedes, and even if he is his prospective customers are going to question his motives for selling them a high end car that he doesn’t own himself. They will equate his enthusiasm to sell them Mercedes with his commission, not his respect for quality, no matter how genuine he is.
You should have conviction about your offering. Personal experience with a product is essential for developing a realistic expectation. Nothing says “I believe in what I have to offer, and its value” more than owning it yourself.
Place the shoe on the other foot for a minute. If you went to an eye surgeon to get laser-assisted in situ keratomileusis (LASIK) vision correction and he was wearing coke bottle glasses, would you stick around for the procedure? Wouldn’t you question why he hasn’t had the operation performed on himself? How about getting into an airplane that was remotely controlled by the pilot from the ground, would you do that? Why then would your client want to purchase an indexed annuity from you if it’s not good enough to own yourself?
If you are selling indexed annuities, and you don’t own one, WHY? They provide index linked interest, right? They guarantee a minimum interest rate on your money with the opportunity to earn additional interest above and beyond that. Doesn’t that sound good to you? The interest credit is locked in and cannot be taken away, correct? Don’t you believe this? Indexed products protect your principle and gain interest while guaranteeing an income you can never outlive. Do you not find this attractive? Penalty free withdrawals provide you with limited access to funds if you need money. Isn’t this satisfactory?
Of course all of the benefits listed above are important and valuable to many consumers. And yes, I do believe in the products. I have seen their worth, and have experienced the real benefits they provide. I know they are not all created equally, but I would recommend the carriers and products that I own myself.
I encourage you to believe in them too and embrace them. Financial advisors should purchase a product that they most often recommend. Show your conviction for the industry and products that you offer your clients. Most carriers will issue a qualified (IRA, or better yet a Roth IRA) policy with a minimum $2,000 deposit.
So what is your excuse?