Do you sell immediate annuities? If not,is it because the commissions are so low? I don't sell them for that reason and yet I have a system for making the prospect happy and not taking a reduction in compensation.

Here it is and please keep it a "secret" or the immediate annuity companies will be out of business!

When I meet someone and their primary interest is income I say this:

"Mrs. Jones, I know you need income and my annuity products will provide that for you. The problem is once you create the income stream you can't change it and you will be locked in. Here is something that other people in your situation have done. Many people have delayed the decision to convert their funds to income and at the same time have their funds invested in safety and security."

By explaining to Mrs. Jones the fact she can control future unknowns it spins the use of an annuity to her benefit. It allows her to feel in control and to offer her more options.

1. Find out how much money they have for the immediate annuity

2. Go to any insurance company website and price the immediate annuity based on the amount and her age.

3. Determine the monthly income at the current age and then re-run the calculation at ONE YEAR higher. As an example if she were 70, run it at 70 and at 71.

4. You will have two figures (as an example) let's say the income at age 70 is $1,000 a month and the same deposit at 71 is $1,050.

Now back to Mrs. Jones..."Mrs. Jones, the current income value of your deposit based on your current age is $1,000 a month. Immediate annuity rates are based on your age and each year those factors determining the monthly payment increases. For instance, the same money will provide more income at 71 than at 70 because it is based on age and life expectancy."

"Mrs. Jones, Why not consider putting your funds on deposit and select the interest only option. My annuity company will pay a first year interest rate of 6% (bonus first year) and you remove the earned interest on a monthly basis. The interest each month will be $1,000 a month."

I continue. "Next year when the interest rate changes we will have several options. You can keep your funds on deposit and continue to withdraw the monthly interest, you can convert it all to an immediate annuity or you can continue to withdraw the same fixed amount."

Naturally if you invade principal for the same monthly income as with the bonus interest rate your account will decrease. Here is how I deal with this.

"Mrs. Jones, Even though every year your account declines, the factor that determines a monthly payout for you increases (mortality table) so at any time you can convert your pile of money to an income stream, and you can determine how long that income stream will be, even for the rest of your life."

This simple concept works like a charm because it gives Mrs. Jones control of her future options.

· Monthly income which is desired

· Not locked into a payout, what if her situation changes

· It gives the prospect control over future choices and provides options

Plus the compensation is higher and it becomes a complete Win-Win Situation.