Modesty may be a fine quality for one desirous of living in a monastery, but it is at odds with the marketing of annuities. With all the noise created by purveyors of other financial product an annuity provider cannot be soft-spoken in relaying the benefits of buying one. You need to state annuity benefits loud and clear.

Don't simply say Higher Potential Return, instead Shout - In the last year index annuities have delivered 3 to 8 times the return of CDs.

Don't simply say Protected from market risk, instead Shout - No index annuity owner has ever lost a dime due to market downturn.

Don't simply say Safe, instead Shout" - No index annuity owner has ever lost a dime because a carrier failed.

Don't simply say An index annuity is an alternative to a bond, instead Shout - Unlike bonds index annuities don't lose value when interest rates rise.

Don't simply say Annual Reset, instead Shout - An index annuity let 's you take advantage of market drops.

Marketing is finding people that may need the solution you offer. In today's crowded world you may only get one chance to be heard, so make it strong.

A Fixed Annuity Is An Income Stream
A fixed annuity is a savings vehicle that offers minimum guarantees, tax advantages and the ability to receive an income one cannot outlive. Anecdotal evidence suggests 98% of the fixed annuities purchased are not annuitized, but instead used as a conservative savings instrument offering availability of interest and the ability to pass along assets to a designated beneficiary. And yet when I ask consumers what a fixed annuity is they tell me it is an income vehicle. They also often tell me they will not buy one because they do not need income.

The income benefits of a fixed annuity are wonderful. What other financial vehicle guarantees you will not outlive your money? And this benefit will become more important in years to come. But the income feature is only one benefit of owning an annuity. Tell the consumer you want to talk about a savings vehicle.

This is a savings vehicle that guarantees you will earn at least a minimum return regardless of where future interest rates go - only United States Savings Bonds also offer this feature.

This is a savings vehicle protected by a special fund designed to guarantee account values if the company backing the savings vehicle fails - only certain bank accounts also offer this feature.

This is a savings vehicle that can provide an income one cannot outlive - no one else offers this feature.

This is a savings vehicle that gives you a choice of receiving a stated rate of interest or the potential for more interest by participating in an external index - and this savings vehicle is a fixed annuity.

A Fixed Annuity Is A Variable Annuity
Often the financial press will write about annuities, usually with a negative tone, but invariably the article is about variable annuities. Variable annuities are as far away from fixed annuities as mutual funds are from certificates of deposit, and yet many consumers, and reporters, confuse the two.

When I get a call from a reporter wanting to talk about fixed annuities I always ask them a question - "Do fixed annuities have fees?" If they answer yes, I tell them to go to my web site and read the article "A Reporter's Guide To Fixed Annuities". Producers need to ask consumers the same question and then educate them on what a fixed annuity is.

A Fixed Annuity Is For Old People
A fixed annuity candidate is not determined by age but by needs and risk tolerance. To wit, a 75 year old with good genes and sufficient resources may never be a fixed annuity candidate because they do not want or need the safety features. On the other hand, an age 30 worker with scads of time until retirement may never develop the emotional tolerance to risk money and would be a good fixed annuity candidate.

I have heard fixed annuities slammed when used with people some deem too old or too young. The too old criticism usually is based on surrender charge and goes something like "an 80 year old should not buy an annuity with a (7, 10, 12, 15) year surrender charge because it ties up their money". The truth in this argument depends on the needs - and not the age - of the annuity owner and the features of the annuity chosen. If the annuity owner will probably need access to most or all of the money before the annuity's surrender period is over then they should buy a different annuity with a shorter surrender period, and other concerns can also be met by selecting an annuity with the features needed.

If an annuity owner believes they may need access to more than annual interest down the road then the annuity selected should offer a cumulative penalty-free withdrawal feature. If an annuity owner wishes to make all of the annuity value immediately available upon death, then the annuity chosen should not have any restrictions on payment of death proceeds. If the annuity owner is concerned about possible nursing home bills if future health fades, then the annuity selected should have a nursing home provision permitting access to funds. You can never be too old for the right annuity.

The "too young" slap against annuities is usually based on the IRS rule requiring a 10% penalty on most annuity withdrawals when under age 59½. Whether this really is a factor depends on the comparative returns of other vehicles. If the choice is between a certificate of deposit yielding 2% or a fixed annuity crediting 4%, the annuity still pays more even if hit with the IRS penalty.

I have discovered when you get pass the consumer's misperceptions of what they think an annuity is and show how an annuity really works consumers like them. The industry needs to provide this education.

3rd Party Sources: Last week I was asked if I had something that would counter an 8 year old negative article about index annuities. I said, "Yes, the fact that it is an 8 year old article". There have been few general press articles on index annuities, either positive or negative.

The best one was "A Bear-Proof Way To Ride The Market" appearing in the 30 April 2001 issue of Business Week. "Retirement Years a Time To Lower Investment Risk" was in the 18 January 1998 edition of The Washington Post and another article titled "Equity-Indexed Annuities Appeal to the Squeamish" was syndicated by Los Angeles Times on 6 January 2002. A more recent one written by John Waggoner was in the 30 July edition of USA Today on page B3. It is balanced containing information like "EIAs are appealing because the stock market, in a word, stinks." And it also contains nuggets like "Equity-indexed annuities offer juicy commissions, which is one reason people like to sell them." There will be more articles in the mainstream press about index annuities because sales are growing. However, because bad news sells better than good I foresee more negative articles than positive ones.

Show Actual Interest Credited: The consumer wants to know if index annuity returns are for real, so show the actual interest credited by the carrier on their index annuities. Index annuities have been around for almost ten years and carriers can and have produced materials showing what their index annuities have credited.

Show Actual Interest Credited (Two): If the producer has offered index annuities for over a year copies of current client statements are showing very competitive credited interest. These statements, with personal data discreetly airbrushed out, demonstrate both a truth of the returns and the fact that other people trust the producer with their money.

It Takes A Village: Show consumers the steady growth in the amount of index annuities purchased quarter after quarter. There have been $60 billion of annuities purchased since 1995 and every year has been a new record. All of those index annuity buyers can't be wrong?

Shoot Yourself First: Consumers expect to be lied to and misled...so the producer doesn't do that. Instead, the producer shows all the warts of the product and why it is still the right solution.

If the producer thinks the surrender charge period will be an issue then the solution is to bring out the annuity disclosure form showing the surrender charges and then educating the consumer on why the annuity is still appropriate. What if the producer can't overcome a surrender charge objection? Then obviously this was not the right index annuity for this consumer.

Producer Passion: If one believes strongly in their truth then others are likely to believe as well. If the producer honestly believes in the index annuity, and its appropriateness as a solution, the consumer will often also believe.

For a sale to result the consumer needs a rational benefit to justify the decision, an emotional benefit to be spurred to action, and because they have been burned in the past a reason to believe they are hearing the truth. Supply that reason.