Preempting the objection is showing the consumer why the annuity fits their goals in spite of the negative aspects of buying the annuity. It is creating a favorable decision-making framework that raises and answers the objections before the presentation begins.
It is the exact opposite of the agent waiting until “the close” to find out what information is missing, which is often too late because the consumer has already decided not to buy based on the information they have. The way in which the relevant information is presented usually determines the decision outcome.
Framing the information
The framing of the information helps the consumer determine whether the annuity will help them and should be purchased. If you want to minimize future objections begin your presentation by saying this: “As you can see I have written on this piece of paper the words ‘CD, fixed annuity, savings bond’ and what we will be talking about today are fixed annuities. In a fixed annuity both your principal and credited interest are protected from risk of market loss. In fact, do you know anyone who has ever lost money in a fixed annuity? So, let’s try to beat your bank return!
“This annuity has very favorable long-term benefits and should be used for your serious money that you will only touch after everything else is gone. Of course, you will always have free access to 10 percent a year of the annuity value and the entire value is available if you enter a nursing home. With that in mind what additional liquidity might you need from the annuity that would not be met by your other assets?
“I noticed that your bank is renewing your one-year CD at 2 percent. This annuity will credit 4 percent interest next year (or, it gives you the potential to make up to a cap of 7 percent interest next year because it benefits from increases in an index). What are your goals for these annuity dollars?”
One minute to calm their concerns
The agent has spent one minute framing the fixed annuity as a safe place for long-term money with the potential to earn more interest than the bank would pay, and only after this initial framing is completed is the consumer asked what he wants. The agent has highlighted the three major annuity objections that are sometimes raised safety, liquidity and returns. If the consumer has significant concerns about any part of the objection trinity they will probably say something now and this allows the agent to adjust their presentation for a successful close.