Real Talk About Annuities: Part 2- Simplifying the Annuity Conversation

How do you have a straightforward conversation with clients about annuities? Some aspects of annuities are complex due to the various features, benefits, and options such as payouts, living and death benefits, and more. Admittedly, the contract language, fees, and expenses are detailed. But those complexities can be explained by highlighting the value and benefits an annuity can deliver as part of a comprehensive portfolio.

It helps to focus on this simple message: Annuities are tools to provide a guaranteed income stream that can help clients solve real-life retirement planning challenges and pursue long-term goals. They can be set up to cover the lives of one or two individuals, along with options to secure a larger death benefit above the standard death benefit in the event of the annuity owner’s untimely death.

So how do you simplify the perceived complexities? Frame your conversations about the potential role for annuities in a retirement plan and explain how they can help address long-term needs and goals specific to your client’s circumstances. Most clients understand the concept of paying for the services they receive, so it makes sense to cover annuity fees alongside the features and benefits. Take the time to discuss the fees and the benefits they deliver. Advisors and clients should focus on the value and unique benefits annuities provide in exchange for these fees.

At Brighthouse Financial, we see the advisor as the source of information in guiding their clients to a strategy that can help them reach their financial goals. To learn more about the role annuities can play in your clients’ retirement portfolio, explore The Role of Annuities in Retirement insights.