Our Annuity Objection Playbook

If you’ve ever had a client hesitate on an annuity, you’re not alone. Many prospects have concerns—some valid, some based on misinformation. The key to closing more annuity sales isn’t just explaining features; it’s tackling objections head-on with confidence and clarity.

Here’s how to address the most common roadblocks:

🛑 “I don’t want to lock up my money.”
Many clients assume annuities mean losing access to their funds. The truth? Many annuities offer liquidity features like partial withdrawals, penalty-free access for emergencies, or structured income streams that ensure they never run out of money. The key is positioning annuities as a flexible retirement income tool, not a financial handcuff.

📉 “I can get better returns in the stock market.”
While market-based investments may offer higher potential returns, they also come with risk. Annuities provide guaranteed income and protect against market downturns. For clients who value stability over speculation, an annuity can be a crucial part of their retirement plan.

💰 “Aren’t annuities expensive?”
Fees vary depending on the type of annuity, but the right product provides value that outweighs the cost. Instead of focusing on fees, reframe the conversation around what they get in return—a predictable, lifetime income stream, tax advantages, and financial security.

⏳ “I don’t need this yet.”
Waiting means missing out on growth potential and better payout rates. Annuities work best when they have time to accumulate value. Remind clients that planning early gives them more control over their future financial security.

The key to overcoming objections? Lead with education, address concerns directly, and always bring the conversation back to what matters most—their long-term financial confidence.

*Complimentary for contracted and producing partners

Fixed Indexed Annuities (FIAs) do not involve investments in an index. The index performance used to calculate credited interest typically does not include dividends. Some FIAs involve the use of multiple indexes. Methodologies for crediting interest differ among FIA products (e.g., point to point, high water mark, annual resets, single year, multi-year, etc.). Interest crediting methodologies may include caps, participation rates, spreads, margins, or fees that may change from time to time depending on the product.

Interest and other guarantees in an annuity are subject to the claims-paying ability and financial strength of the insurance carrier that issues the product. Annuities are long-term vehicles. Many have surrender charges over many years, and withdrawals from an annuity prior to age 59 ½ may be subject to a 10% tax penalty.

Reducing or skipping premium payments will impact the amount of interest paid and may impact how long the policy lasts. Accessing the cash value of a policy will reduce the available cash surrender value and the death benefit. A policy owner does not have the ability to make unlimited payments into the policy. If too much is paid into the policy, it will become a Modified Endowment Contract (MEC) and withdrawals and loans will be taxable. Policy guarantees are based upon the claims-paying ability of the issuing life insurance company.

There are multiple ways to insure for long-term care needs. Options vary and some are less expensive than others, but may offer fewer guarantees. A financial professional can work with you to determine what coverage is right for you and how much coverage you should purchase. Health insurance doesn’t cover long-term care expenses. Medicare will cover some long-term care costs, but only up to 100 days (after a 3-consecutive-day stay in a hospital under treatment). Medicaid will cover long-term care expenses for individuals with assets of $2,000 or less (varies by state) and covered care may be limited to a nursing home. Paying for long-term care costs out of pocket may not be practical or cost-efficient for many people.