By Brian D. Mann
AnnuityNews
The initial meeting with a new prospective annuity client is a bit like a first date or a job interview. Both you and the client are trying to get to know each other and are anxious to know whether you will want to work together. It is a meeting where everything you do is critical, as it can mean success or failure in making an annuity sale.
Some agents treat the initial appointment as a science. They have a particular method that they follow or a particular questionnaire that they use for every single client. Others treat it as an art, and they simply try to create a comfortable atmosphere and casually uncover a client need that they can serve.
However, regardless of whether you take a “science” or an “art” approach to the meeting, there is one rule that you should always follow: Always ask to see your client’s most recent tax return.
This story from an advisor who I mentor tells you why:
“Brian, I just met with one of my long-time clients, and as you suggested, I asked if I could see their most recent tax return. I was stunned when I saw that they had more than $10,000 of taxable interest on line 8. They have more than $1 million in the bank that they never mentioned to me! I asked them if they are happy with the interest rate they are currently earning, and when they said no, I was well on my way to making an annuity sale.”
The reality is that there is no better annuity fact finder than your client’s most recent tax return. Here’s why.
- The tax return is efficient. Through the various sources of income reported on it, you can uncover your client’s bank, mutual fund and brokerage accounts. With just a few additional questions, you can uncover your client’s retirement accounts and insurance coverage.
- The tax return provides full disclosure. I am sure that you have noticed that prospective clients, for a variety of reasons, tend to hide one or more aspects of their finances from you. Sometimes, with a married couple, it is because they are hiding some financial facts from each other. Other times, they just don’t trust you enough to reveal their full financial picture. A beautiful aspect of the tax return is that is it generally honest, complete and objective. Clients know that if they withhold information from the IRS, they could go to jail.
- The tax return gives you credibility. Most clients seek out an expert every year to help them prepare their tax return because they don’t understand how to fill it out. They consider taxes to be a hopelessly complex mystery. The fact that you can read the tax return and can understand what it means will impress your prospective clients and give an immediate boost to your credibility.
So, handle the initial client meeting however you would like, but make sure that you always ask for the tax return. Your annuity sales results will immediately improve.
Brian D. Mann is the senior vice president for the annuities and RIA divisions at Partners Advantage Insurance Services, LLC. He is a multi-million dollar personal producer, coach and mentor for insurance professionals. Partners Advantage is a national insurance marketing organization that proudly serves as a one-stop shop to over 20,000 independent insurance agents, financial planners and broker-dealers.
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