Referred to as “the A-word” on occasion, annuities may have once been among the most misunderstood investment products in the market. They’ve come a long way, and in the past decade alone, issuing companies have made significant strides, developing innovative products and features that are easier for both advisors and clients to understand.

While things have changed for the better, marketing annuities to financial advisors can still be challenging. By their very nature, annuities tend to be more complex than a simple, traditional investment product like a security or mutual fund. Which means that getting financial advisors to embrace them may take a more thoughtful approach.

Our experience in the annuity space has yielded a few best practices that we think are worth sharing. 

1. Be Human

While it can be tempting to market a host of annuity benefits, instead connect those features—things like guaranteed interest rates and income—to the impact they can have on human experiences and life events. Whether it’s sending a child to college, retiring on their own terms, or taking care of an aging parent, help advisors and their clients see themselves and how annuities can help them do the things that are most important to them. 

2. Use Real Words

While terms like RILA, surrender charges, and annuitant might be real things, those words will likely mean nothing to the average person. Annuities, perhaps more than any other investment product, are fraught with terminology and acronyms that can contribute to confusion. Stick to clear and straightforward language to explain what annuities are and how they work. Stay away from ambiguous industry terminology and jargon.

3. Take an Educational Approach

Financial advisors are more likely to recommend an investment product to a client when they understand—and are able to explain—how it works. Because there are so many different types of annuities out there, help create clarity with general education around annuities beyond your products. Only when advisors and clients have a clear picture of what annuities are and how they work can they visualize those products within their own circumstances.

4. Keep the Focus on the Client

Most financial advisors agree that having marketing content that is approved for use with clients is highly valuable in the sales process. In addition to arming advisors with tools they can use when presenting to their clients, this type of content also helps advisors understand how the product works and how to discuss it with their clients. Without client-friendly pieces, advisors are essentially on their own to show investors how an annuity might benefit them.

5. Be an Oversharer of Information

Annuities have traditionally been seen as complex, particularly when it comes to costs and fees. To help ensure advisors and clients have a clear understanding, provide as much transparency as possible, especially when it comes to the numbers. That means being clear and upfront about fees, including administrative fees, mortality and expense risk charges, any rider fees, and commissions, so that clients can feel confident about what they are paying for. 

6. Tell a Consistent Story

This might sound like Marketing 101, but be sure that you’re telling a simple and consistent story about your product across channels and audiences. While there may be additional information that’s important for advisors to know, sticking to your value proposition will go a long way toward brand recognition and trust, as well as getting your message across.

7. Know Your Audience

We know that financial advisors are not one-size-fits-all, so understanding your advisor audience and their marketing preferences is critical when it comes to reaching them with your message. That means considering all mediums that are potential touchpoints for your advisor audience – whether that’s website content, webinars, videos, social media, or however they tend to do business.

8. Leverage Your Wholesalers

We’ve heard from financial advisors that they receive an endless stream of marketing content, emails, and print collateral that they don’t necessarily have time to sift through. Many rely on their wholesalers for help with everything from understanding product features and benefits to meeting with clients and hosting client events. Be sure your wholesalers are telling the best story and following their own best practices when dealing with advisors. 

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At the end of the day, advisors have an overwhelming number of investment solutions to choose from when making recommendations to their clients. By following a few simple best practices, you can help ensure that your annuity marketing messaging cuts through the clutter and resonates with advisors and their clients.