Easy ways to bring up annuities with clients don’t lead with the annuity. Ask about the retirement worries they already have, like running out of money, a market drop right before retirement or paying for care, and listen for money that is sitting idle or exposed to risk. Below are the four steps and 11 conversation starters from our Annuity 101 training for agents.
Key takeaways
- Lead with the client’s retirement concerns, never with a product.
- Listen for idle or at-risk money: CDs, savings, bonds, old 401(k)s and IRAs no one is managing.
- There is no standard allocation. Recommend only what fits the client’s goals, liquidity and time horizon, and document why.
- A MYGA next to a CD is an easy first conversation, as long as you explain the trade-offs.
- You don’t need to be the annuity expert. Open the door and bring SRS in to design the case.
The four-step annuity conversation
Every opener below fits into the same simple process. It is the one we teach in our Annuity 101 cheat sheet for agents.
- Ask what they want. Where is the money now, and what does retirement income look like?
- Listen for idle or at-risk money. CDs, savings, bonds, T-bills, old 401(k)s and IRAs no one is managing.
- Fit it to the client. Recommend only what fits their goals, liquidity and time horizon, documented as a best-interest recommendation.
- Bring us in. Tim joins the call to design the case with you.
11 annuity conversation starters
Start with retirement income
1. The two questions for every client. Most people have never had anyone walk them through this.
“How much guaranteed lifetime income do you have, money that pays no matter how long you live?” Then: “Has anyone ever walked you through the risks in retirement?”
2. Running out of money. Longevity risk means living longer than the money lasts.
“How confident are you that your savings will last as long as you do?”
3. Keeping their lifestyle. The go-go, slow-go and no-go years of retirement each cost something different.
“What do your go-go years look like: travel, family, hobbies? Do you have the income to keep that up through all of retirement?”
Talk about market risk
4. Getting down the mountain. Most advisors focus on the climb, the years of saving. Far fewer talk about the way down, when withdrawals start.
“You’ve done a great job climbing the mountain. Has anyone talked to you about how to get down it safely, once the withdrawals start?”
5. Loss hurts. A 20% loss needs a 25% gain just to get back to even, and a 50% loss needs a 100% gain.
“If the market dropped 20% the year you retire, you’d need a 25% gain just to get back to even. How much of your retirement money is protected from that?”
6. Sequence of returns. Two retirees can earn the same average return and get very different results, depending on when the bad years come. We explain it with a simple example in Sequence of returns risk: how to explain it to clients.
“No one controls what the market does in their first few years of retirement. Can I show you why the order of returns matters as much as the average?”
Find the safe money
7. The CD conversation. Banks email CD rates to their customers every week. A side-by-side helps the client weigh taxes, access and who stands behind the guarantee. See MYGA vs. CD for the full comparison.
“When your CD renews, would you like to compare it with a fixed annuity that guarantees a rate for a set term and defers tax on the interest? Each has trade-offs.”
8. Index-linked interest. Some clients want a chance at market-linked interest but don’t want their credited interest to go below zero. Fixed indexed annuities offer that structure, though they aren’t the right middle ground for everyone: interest linked to an index, with a floor on credited interest, but also caps, fees and a surrender period.
“Would you like to look at an option where interest is linked to a market index, but a down year credits zero instead of a loss? There are trade-offs, like caps and a surrender period.”
Income, care and the advisor objection
9. Income for life. An actual SRS client example: replacing an older annuity added about $7,500 a year in lifetime income. Results vary, and every replacement needs a full comparison of what the client gives up and gains.
“Do you have income you can’t outlive, beyond Social Security? If you own an older annuity, let’s review what it guarantees today and compare your options.”
10. Healthcare and long-term care. Care is one of the biggest costs in retirement, and some clients won’t buy stand-alone long-term care insurance.
“If you needed care someday, which money would pay for it?”
11. “My advisor handles my money.”
“I’m not asking you to move what your advisor manages. Let’s look at whether any part of your money needs guarantees, based on your income needs and how much you need to keep available.”
There is no standard allocation. The right amount, if any, depends on the client’s income needs, liquidity, time horizon and other assets, and the reasons belong in your best-interest documentation.
Who to call first
Look through your book for clients who are 59½ or older (or close to it) with a lump sum in CDs, savings or an old 401(k) they won’t need soon, anyone two to ten years from retirement, and anyone who has told you the market makes them nervous. The taxable part of an annuity withdrawal before age 59½ can be subject to a 10% IRS additional tax unless an exception applies (IRS Topic 558). That is separate from the contract’s free-withdrawal allowance, which only avoids the insurer’s surrender charge.
What to gather before you call SRS
Send us the client’s age and state (and their spouse’s age if income should cover both), the amount, where the money sits now, whether it is qualified (IRA, 401(k), 403(b)) or non-qualified, how much they need to keep available, and what they want the money to do. If an existing annuity would be replaced, include its statement and contract, surrender schedule, any market value adjustment and the guarantees or riders that would be given up. With that, we can shop carriers and check suitability in one pass. The full intake checklist is in the free cheat sheet, and you can send a case through our annuity quote request.
Get the full Annuity 101 cheat sheet
The Annuity 101 cheat sheet puts all of this on three pages: the annuity types in 60 seconds, all 11 openers, what to listen for, an intake checklist and compliance guardrails. You can also watch Agent Annuity 101 on YouTube or see every product we place on our annuities page. New to SRS? Get contracted here.
Frequently asked questions
Where do many agents start with annuities?
Many agents start with a multi-year guaranteed annuity (MYGA). It has three moving parts (how long, what rate, what access), and most clients already understand CDs, so the comparison is easy to explain. Whether it fits depends on the client.
How much of a client’s money should go into an annuity?
There is no standard percentage. Under the NAIC best-interest model regulation, as adopted in each state, a recommendation has to be based on the client’s own financial situation, liquidity needs, time horizon and goals, and the reasons have to be documented.
When is an annuity a poor fit?
When the client may need most of the money soon, has no emergency fund outside the annuity, or is only chasing returns. Surrender charges apply to withdrawals above the free amount during the surrender period.
What do I need before I can sell annuities?
Typically annuity CE, then the carrier appointment, then the carrier’s product training, then the application. Requirements vary by state and carrier, and SRS can help with contracting and appointments.
Sources: IRS Topic 558: additional tax on early distributions
General information, not tax or legal advice. Annuities are not bank deposits and are not FDIC-insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Product features, caps and rates vary by carrier, contract and state.
Reviewed by Tim Fuller on 2026-10-14
Tim Fuller
President, SRS Inc.
Tim leads SRS Inc., a full-service IMO (Independent Marketing Organization) and BGA (Brokerage General Agency), connecting independent financial professionals with life, annuity, disability income, and long-term care solutions from 60+ carrier partners.
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