Five Proven Steps to Increase Your Fixed Indexed Annuity Sales by 20% in 2025 Without Marketing

Prospecting and selling fixed indexed annuities consistently is no walk in the park. In fact, it can be very challenging.

As agents, you only eat when you kill. Because with FIAs you don’t have the luxury of yearly renewals that come with recurring revenue.

But, the last paragraph might not be true. Imagine a world where you have consistent yearly revenue from your previous FIA sales. How much stress could be taken off you if you had an idea of what you might make next year in FIAs?

This is just BS right? Meet Grace…

Grace wrote $910,000 over 12 months with this methodology. She is a semi-retired agent who does not actively market. All her sales are completely off of replaced business and new funds found during reviews.

Alright, let’s get into it.

Step 1: Know Your Book

One of the most challenging tasks for agents is organization. The lack of organization actually makes sense especially with FIAs. What’s the point of tracking your history if you have nothing to gain for the life of the annuity?

Well now, organizing your book just became your number one prospecting tool. You must be on top of when renewals are coming up. Now, you may be thinking “This would take me weeks, I don’t have time for this.” You may be right, but organizing your entire book all at once is not what I am proposing.

If you start with upcoming renewals, you can start to organize your book gradually. This ensure maximum efficiency while slowly setting up your entire book management system.

⚠️ After Step 5, I show you a way to easily manage your book.

Step 2: Spot the Opportunities

In your book, you have two different types of sales opportunities:

• Replacements
• Reallocations

Replacements

FIA’s that are “prime for review” are your money makers. (Step 3 will explain why this is also ethically the best move for your clients as well.)

These cases have these characteristics:

1. They are 4+ years old
2. Performance is low

That’s it! Those are the indicators that tell you that this case is “prime for review” and will be advantageous for you and your client to review.

Reallocations

Now, I should preface this with not every case will warrant being reallocation. In that case, great! You have a good performing product and your clients are happy. Have a review to show them this and try to get new business or referrals.

However, if you spot a case that is performing lower than it maybe should be, but may not be able to come out of surrender that is a good sign that you should look at a reallocation. We will talk about the profitability of reallocations in Step 5.

⚠️ After Step 5, I show you an easy way to spot opportunities.

Step 3: Protect Your Original Sale

I know what you are probably thinking (we hear this a lot at first), “I sold them that low performing FIA, why would they trust me to sell them another one?” It’s a valid question, however, when you know your numbers and economics, you can go from saving face to your client’s saving grace. FIAs grow based on three key components:

1. Fixed Rates
2. Index Performance
3. Index Volatility

Fixed Rates

We first need to examine the fixed rates in place when you purchased your FIA. The most common way to look at this would be to evaluate the 5 Year Treasury chart. Insurance companies may use a 1 Year Treasury all the way through the 10 Year Treasury and even sometimes the Fed Funds Rate. These rates are directly linked to key factors that influence your annuity’s growth potential, such as the Participation Rate, Cap Rate, and Spread Rate.

As you can see, the Option’s budget, determined by the amount of interest provided by the fixed product, is significantly higher in ’23 and ’24 compared to ’18, ’19, or especially ’20. A product purchased in 2020 likely has much lower Fixed Indexed Annuity rates than one purchased in ’22, ’23, or ’24.

Index Performance

The next thing you need to look at is the performance of each individual index that has money allocated to it. Specifically at the time of the sale, where was it in comparison to today? If it’s lower (or a lot lower) that will affect the overall FIA growth.

Volatility

Finally, you need to analyze the historical volatility of each index in your allocation and determine whether it correlates with any rate reductions you may have experienced.

Knowing these three things as it relates to your clients FIA will help you:

• Explain why they bought the best product they could at the time
• Show why now is a great time to consider a new product with better indexes

This data proves that you did sell them a good product at the time, but there are now better options that they SHOULD look into. This is the best possible thing for the client and potentially makes you a sale in the process.

One last thing before we go to the next step. Did you know there have been 104 indexes added to fixed indexed products since 2018? This is a HUGE selling point for a new product.

Step 4: Prepare for the Review

Now that we know either reallocating or moving to a new product is the best course of action, we need to prepare this information for the review.

Items you should have prepared to walk into the review:

• An analysis of how they are tracking today
• The reasons rates may have dropped
• The research you found in step 3 showing why they bought the best product at the time, but it’s a better time today
• A reallocation plan based on historical performance
• A new product potential

I want to talk about new product potential for a moment. A lot of people think that their client will lost money moving annuities because of surrender charges. Well, with newer annuities today, most of the time you can offer a bonus product to offset that surrender charge.

If you walk into a review with these items, there is no reason you shouldn’t feel extremely confident.

⚠️ After Step 5, I show you a way to generate all of these reports in minutes!

Step 5: Close the Sale

The Profitability of Reallocations

On paper, a reallocation gives you no commission. However, what it does is give you extremely happy clients. The potential for new business and referrals after helping your clients correct the path of what is probably a good portion of their retirement is unlimited.

With all of the information you have presented your client, closing the sale should be the simplest part of the entire process. At this point, you have shown them everything they need to know to make the no-brainer move to upgrade to a new product or reallocate.