A Simple Illustration for Where an Annuity is a Fit

One of the most common requests I receive from my agents is for a simple, easy-to-explain, and easy-to-illustrate idea for helping clients understand exactly why they’re being presented with an annuity solution for their financial needs. For your next client who has trouble visualizing how one works and why an annuity is a fit, share this story.

Step 1: Draw a circle on a blank page. “Mr. Client, you may be familiar with the three stages of money. Let’s talk about them for just a moment. We call the first phase of money the Accumulation Phase. This phase includes the time spent working in our chosen careers, saving as much as we can for retirement.

Step 2: Draw a second circle directly beside and intersecting the first circle. We call the second phase of money the Conservation Phase. The conservation phase actually runs us into the latter part of our careers, as our time we spend working before retirement becomes less and less. In this phase, it’s vital that we protect everything you’ve worked so hard for to enjoy in your golden years. Losing money here can mean catastrophic consequences for your retirement because you don’t have many years left to work and make up losses!

Step 3: Draw a third intersecting circle directly below and in the middle of the first two. The third and final phase of money is referred to as the Distribution Phase. This is where you are able to reap the rewards of all the years spent working hard for retirement. You’ll begin taking your income from the assets you’ve accumulated and protected over the years.

Step 4: Highlight the very center-most area of all three intersecting circles. Mr. Client, the reason I’m recommending this annuity policy for you is that it is perfectly positioned to handle all three phases of money. We have an opportunity for accumulation and growth, while providing guarantees and principal protection. When you’ve reached the point in your life where you’re ready to start taking income, this annuity policy will provide you with an income you simply can’t outlive.”


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