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Annuity Article – How Annuity Brokers Fees & Income Effect Insurance Annuities Selling

This annuity article examines how annuity brokers fees often dictate which product for insurance annuities selling. You will see insurance annuities selling by brokers is a choice between annuity fees and customer needs. Read this important annuity article.

It all often starts out with the vast amount of trade financial and insurance publication advertisements that annuity brokers read. Check out who is trying hardest to attract their attention. The insurance publications rarely show annuity advertisements by companies explaining all the unique benefits the prospective client will receive. You would think that would be the insurance companies’ main concern. WRONG. The insurance companies’ goal is to make plenty of money. Annuities selling is one of these main areas. To achieve this goal they need to attract the eyes of agents seeking out high annuity broker fees. This is the greed emotion that unfortunately attracts the most attention.

There is extreme competition for contracting higher producing annuity agents. My current analysis annuity article shows this: Direct mail solicitation for selling annuities is more than twice as high as any other product. being offered. In looking at financial and insurance publications, it appears total advertising competition for insurance annuities selling becomes around five times as great. Sometimes two different marketing firms compete with promoting the exact same product.

The annuity ads in these insurance and financial publications only focus on two of the major six emotions. They are Greed and Need. The Greed advertisements to an insurance annuity agent focus on greed fees (commissions) and frequently the all expense paid trips or excursions to dream about. The Need advertisements are directed toward gaps or policy feature innovations that “none of their competitors” supposedly come close to having. Selling these insurance annuities often provide clients with more benefits and as a result, pay out lower broker fees.


Based on quantity of total annuity producers, the GREED emotion of an insurance annuity agent comes through the strongest by far. A purchaser, who does not shop around, buys what agents or brokers offer. Therefore, the product shown to the prospective client is most often the one paying the seller the highest commissions. Here is why. The broker may have one annuity paying 4% commissions and another paying out 6% commissions. If the annuity policy sold is for $50,000, the commission would be $1,000 higher when 6% commission is paid. Insurance annuity brokers make up 60% of all annuity writers, and have an average of 6.7 years experience. The majority of the smaller life annuity selling agents tend to place their business with one insurer only.

Annuity brokers tend to report much high earnings when they represent a multiple of providers. Customer service is always king, and in the case of an economic slowdown, it might correct the broker into selling his prospect the correct policy. Making a few more bucks now, can cost fistfuls of big money presidential greenbacks in the future. Rarely are the highest paying commission products the best quality ones to sell.


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