What it takes to properly qualify a prospect

Qualifying a prospect isn’t just about checking a few boxes — it’s about understanding their full financial picture, identifying their true needs, and ensuring the product you recommend is the right fit. 

Many agents fall into the trap of assuming a prospect is a good fit for an annuity (or any financial product) too early in the conversation. But the best agents take a more structured, strategic approach.

Here’s what it really takes to qualify a prospect effectively:

1. Start with the Basics: Understanding Their Financial Situation

  • What is their current income and expected income in retirement?
  • Do they have existing retirement accounts (401(k), IRA, pensions, etc.)?
  • What are their monthly expenses, and do they anticipate any major changes?
  • Do they have outstanding debts that could impact their retirement strategy?

2. Identify Their Goals & Risk Tolerance

  • What does their ideal retirement look like?
  • Are they looking for guaranteed income, growth potential, or a mix of both?
  • How comfortable are they with market fluctuations?
  • Have they had any negative experiences with investments in the past?

3. Uncover Hidden Concerns & Motivations

  • What worries them most about retirement — outliving their money, market crashes, healthcare costs?
  • Do they have family members they want to support financially?
  • Have they considered tax implications for their retirement savings?

4. Gauge Their Knowledge & Experience

  • Are they familiar with annuities, or is this their first introduction?
  • What other financial strategies have they used or considered?
  • Who else is involved in their financial decisions (spouse, accountant, financial advisor)?

5. Address Potential Objections Early

  • Have they heard negative things about annuities before?
  • Are they hesitant about liquidity, fees, or surrender charges?
  • What would stop them from making a financial decision today?

Why does this matter?

The more you understand your prospect’s financial situation, goals, and concerns, the easier it becomes to recommend a solution that makes sense. Asking the right questions builds trust, positions you as an expert, and helps you avoid wasting time on prospects who aren’t the right fit.

This structured approach is a key part of our 5-Step Sales Process — helping agents like you close more deals by leading with education and value. Learn more today!