Annuity Sales Frequently Asked Questions

Who Is Our Target Market?

Our target market for annuity sales is the Senior Citizen/Baby Boomer demographic.

Roughly, this refers to people 50 and older who have low to moderate levels of income. The vast majority of our market is either:

• Disabled and cannot work, or,
• Retired and chooses not to work.

We love this demographic because of its long-term fundamental strengths, and believe there exists decades of sales opportunity for agents who commit to it.

Some benefits of the Senior Citizen/Baby Boomer market include:

• 11,000 people turn 65 each DAY between 2020 and 2030.
• The 65 and older population will increase 50% from 2020 to 2040 (from approximately 50 million to 75 million).
• Social Security pays our prospects no matter what the economy does, providing sales opportunities to prospects with less income sensitivity compared to working people.
• Medicare supplemental insurance companies invest millions upon millions of dollars to promote purchasing Medicare Advantage and Medicare Supplement policies, which conditions Medicare recipients into thinking buying an additional Medicare policy is a must-have purchase.
• Social Security and Medicare are political third rails. Few politicians will risk their careers attempting to reform either program as voters in older age brackets will vote them out if either program is even threatened.

I sell Final Expense, Mortgage Protection, and/or Medicare At Another Agency. Can I Still Sell Annuities With The Duford Insurance Group?

In short, yes.

We’re happy to have you come aboard and exclusively sell annuities to your existing lead system even if you have other relationships with other agencies.

The only obligation we ask of you is to do all of your annuity business with us in exchange for us training you on how to uncover the opportunities and how to close them.

How Has Covid-19, Recessions/Depressions Affected Selling The Senior Citizen/Baby Boomer Market?

Believe it or not, little to none!

In fact, some agents’ sales results have only improved since the Covid-19 pandemic began.

Here’s a few reasons why pandemics, recessions, and Depressions have less impact in our market than others:

• Guaranteed Income. Almost all our clients receive Social Security income payments. The US Government has never been late paying Social Security at any time since its inception nearly 100 years ago. And this means when the economy goes bad and workers lose their jobs, our prospects continue to get paid, on time and without reduction. This translates into a business model with less swings up and down and more consistency.
• Gaps In Medicare Coverage. When a senior turns 65 and starts Medicare, most feel additional coverage is necessary to fill the gaps in their coverage. And naturally, being older and closer to life’s end, there is more concern (especially as we’ve seen during the pandemic) about having quality health insurance coverage than in earlier years.
• Business Model Flexibility. For final expense and Medicare, we can successfully sell either face-to-face or over the phone. If there is some sort of lockdown or restrictions face-to-face, it is within reason to sell over the phone with similar success.

All About Commissions

How Does Annuity Commission Work?

Depending on the type of annuity product you sell, commissions will range typically between 5% and 6% depending on the length of time of the annuity, the product sold, as well as the carrier.

Do I Need A License? If So, What Kind?

For the annuities we sell, in most states, all you need is a life insurance license. Some states require additional testing. You do NOT need a financial advisor certification as we do not sell variable annuities.

Click this link to get more specific directions on how to get your insurance license, and where to get pre-licensing started.

NOTE: Get $150 off of your pre-licensing exam for life and health here.

Expect this process of licensing to take 2 to 3 weeks for the average person.

Do You Work With Part-time Agents?

Yes! DIG founder David Duford started selling final expense part-time in 2011.

Part-time DEFINITELY works, but you need to have a FULL-TIME mentality to make it work optimally.

How Does DIG’s Annuity Sales And Marketing Training Work?

Here’s how annuity training works at Duford Insurance Group:

• Free Fact Finder Training. We train agents to first find annuity opportunities in their existing lead systems. See the fact-finder video at the very top for a full breakdown on how to uncover annuity opportunities. Once you find an opportunity, the next step is to submit the fact-finder to us. Then, my annuity trainer Stephen Burgess will call you to go over the viability of the opportunity and explain what would happen next.
• One-on-one coaching. You have access to Stephen Burgess directly to help design your annuity case for your client, in addition to coaching you personally on the best practices of following up and getting the annuity issued.
• Direct access to David Duford. As a DIG agent, you’ll get David Duford’s personal cell phone whenever you need help with anything. Just call and/or text and David is at your service.