The Dumbest Things Annuity Agents Say

Don't let Annuity Agents Play ding dong dash with a load of Sales Bull
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Annuity agents are well known for their persistence, high pressure tactics, and anything goes mentality to achieve that almighty sale. There are so many stupid things that agents say which you need to be aware of when listening to an annuity sales pitch. Below are the current top 5 dumbest things annuity agents are now saying; I have heard all of these comments numerous times from people calling me to see if this nonsense is true.

#1 “I have the best annuity for you”

Translation, they have the best annuity for them. High commissions or some exotic sales incentive is too often the driving force for the recommendation. There is no such thing as a “best annuity.” 

Annuities are contractual guaranteed contracts, and I refer to them as customized commodities. You should always buy an annuity for what it “will do, not might do.”  In other words, base your decision solely on the contractual guarantee.

#2 “This annuity is exclusive, and not everyone has it”

Complete bull manure. Once again, this statement originates from lack of agent knowledge or the fact that they don’t represent a lot of carriers. 

#3 “I can get you stock market growth with no downside”

This is your typical indexed annuity nonsense. Indexed annuities were introduced in 1995 to compete with CD returns, not stock market returns. Always remember that if it sounds too good to be true, it is every time with annuities.

#4 “This is a hybrid annuity”

Hybrid describes a car. Hybrid describes a plant. Hybrid DOES NOT describe an annuity. This correlation is made up by indexed annuity huckster salesmen to lure you into buying the product. This is a great example of the annuity industry not regulating their sales message.

Using the word hybrid to describe an indexed annuity reveals the low intentions and IQ of the agent pitching this garbage.

#5 “You pay no commissions”

If an agent tells you this, they must think you are really dumb. Who would believe this sales drivel? No load annuities are purchased directly from the carrier, and never involve an agent. So when an agent says this stupid phrase about commissions, let them know you understand that ALL annuity commissions are “built in” to the product. The selling agent definitely gets paid, and even though it might look like it’s a net transaction to you, the agent’s commission is part of the pricing and structuring of the product. Have them explain the commission built into the annuity they are so eager to sell you, so you know they understand.

Don’t be “Dumb & Dumber”

We’ve all seen the classic movie starring Jim Carrey and Jeff Daniels. If you haven’t, then go rent it. My point is you don’t want to play “Dumber” to the agent being or saying something “Dumb”. You are smarter than that.  You are too savvy to fall for the stupid agent hype.

Since the annuity industry does not seem interested in policing the sales message, here is what I advise you to do if your agent starts pitching the greatest sounding thing since sliced bread.

After the agent finishes the pitch, simply write everything down EXACTLY how you understand it. Be thorough and detailed with the list, then sign and date it at the bottom.

Before you purchase said annuity, and after you signed and dated your synopsis, the fun starts and the agent IQ test begins. Simply slide it over to that eager beaver agent and request they sign and date it as well. Ask them to own their too good to be true sales pitch. Force them to back up those promises. 

My prediction is that pen will be pretty heavy. And if they are dumb enough to sign it, you'll then need to send that document to the annuity company. Be careful out there, and always listen to your gut feel when an annuity agent is trying to sell you something. I believe that these days of pitching annuity products for commissions are numbered, but stay vigilant and aware as a consumer should be.