Breaking Down Fixed and Indexed Annuities for Medicare Agents

In episode 80 of the Insurance Business Babes podcast, host Kathe Kline is joined by Tiffany Washington, whose unique journey from optometry to Medicare insurance provides valuable lessons for insurance professionals at every stage.

Tiffany began her insurance career as a Licensed Only Agent (LOA), not fully understanding the differences between being an LOA and an independent agent. Her turning point arrived after three years with the same company, when she realized a new contract would leave her without ownership of her existing book of business. Despite having 627 clients, Tiffany made the tough decision to start over as an independent agent, underscoring the importance of contract transparency and owning your clientele from the onset.

A central focus of this episode is the prospect of cross-selling fixed annuities. Kathe highlights both the opportunities and risks: while annuities can offer clients principal protection and guaranteed income—serving almost like a self-made pension—they come with complexities in terms of product types (like fixed and indexed annuities) and beneficiary options.

New agents are urged to master the basics and prioritize clear client communication, especially when discussing accumulation versus annuitization phases or navigating beneficiary selections.

Both Kathe and Tiffany agree on the significance of protecting your reputation and client base. Kathe advises agents to stay client-focused, never sell products with high surrender charges unless they're genuinely in the client’s best interest, and ensure Errors & Omissions (E&O) insurance is properly updated before offering annuities.

Tiffany’s takeaway: always put yourself in the client’s position and document everything.

Whether you’re considering adding annuities to your offerings or deciding between meeting clients in-person versus virtually, keep your business model flexible and your ethics at the forefront. As Kathe concludes, focusing on clients’ needs—and not just the commission—builds both trust and long-term success in the insurance world.

This episode is sponsored by ⁠CertifiedMedicareAgents.com⁠. Use the coupon code BABES2024 for a free lifetime BRONZE membership.