You already know annuities belong in your Medicare conversations.

The harder question is: what do you actually say?

Most agents know the product. They understand the mechanics. They can explain the difference between a fixed and indexed annuity. But when they’re sitting across from a 68-year-old client with $120,000 sitting in a savings account earning 0.5%, they freeze.

They don’t know how to open the conversation. They don’t know how to explain the product without sounding like a financial advisor. And they definitely don’t know what to say when the client asks, “But what if I need that money?”

This guide gives you the exact words. Annuity conversation scripts for every stage — from the first question to the signed application.

Know Which Clients Are Ready for This Conversation

Not every Medicare client is an annuity prospect. The ones who are will say one of these things (or something like it):

• “I’m worried about outliving my money.”
• “The market makes me nervous.”
• “My CD just matured and I don’t know what to do with it.”
• “I have money just sitting in savings — I know I should do something with it.”
• “I don’t want to be a burden on my kids.”

Listen for these signals. When you hear one, you have an opening.

Know Your One-Sentence Product Description for Each Type

Before you use any annuity conversation scripts, have these memorized:

Fixed annuity: “You deposit a lump sum, earn a guaranteed rate for a set number of years — like a CD, but usually higher — and it grows tax-deferred.”

Fixed indexed annuity: “Your money is tied to a market index, so you get growth potential when markets go up. But there’s a floor — you can never lose principal due to market drops.”

Single premium immediate annuity (SPIA): “You hand the carrier a lump sum, and they send you a guaranteed check every month for the rest of your life. It’s like creating your own pension.”

If you can say those three sentences clearly and confidently, you’re ready.

This is the most important stage. You’re not pitching. You’re asking.

If a client mentions market worry:

“You mentioned the market makes you nervous. Can I ask — do you have money in accounts that are exposed to the market right now? How much of your savings is at risk if the market drops?”

Let them answer. Then:

“There are products I work with that give you growth potential but protect you from losing principal. It’s not right for everyone, but it might be worth a 10-minute look. Would that be okay?”

If a client has a CD or savings account maturing:

“Do you know what rate you’re getting on that right now? [They answer.] I’ve been seeing fixed annuity rates running significantly higher than most bank products right now — same level of safety, just a better return. Would it make sense to compare the two before you roll it over?”

If a client mentions worrying about running out of money:

“That concern comes up a lot with my clients. Can I ask — do you have a source of income right now that lasts for your entire life, no matter how long you live? [They answer.] There’s a product that creates exactly that — a guaranteed check every month for life. It’s called an annuity. Have you ever looked into one?”

If nothing obvious comes up:

Use this at the end of an annual Medicare review:

“Before I let you go — I like to ask everyone one question about the bigger picture. Are you feeling confident about your retirement income? Not just Medicare, but income overall?”

That one question opens the door 30% of the time.

Once the client is curious, explain simply. Use the one-sentence descriptions above. Then follow up with this structure:

Step 1: Confirm their goal

“So it sounds like what you’re really looking for is [protected growth / guaranteed income / something safer than the market]. Is that right?”

Step 2: Match the product to the goal

“The product that fits that best is a [fixed / indexed / immediate] annuity. Here’s how it works in plain terms: [one-sentence description]. Does that make sense so far?”

Step 3: Show the numbers

“Can I get a quick illustration together for you? It takes about five minutes and shows exactly what this would look like with your specific numbers — how much you’d put in, what you’d earn, and what you can access. Would that be helpful?”

That’s your bridge to an illustration. Never show illustration numbers until you’ve confirmed their goal and matched the product.

When you come back with the illustration, keep the presentation to three points:

Point 1: What goes in

“You’d deposit [$X]. That’s the premium — one time. Nothing else comes out of your pocket.”

Point 2: What it does

“Over [X] years, at the current [guaranteed / illustrated] rate, that grows to approximately [$X]. That’s [guaranteed / based on the index performing at current historic averages].”

Point 3: What you can access

“You can withdraw up to 10% per year without any penalty. So if you needed [$X], you could take it out. The rest stays working. After [X] years, the surrender period ends and you have full access to everything.”

Then stop talking.

“Questions on any of that?”

The most common question: “What if I need the money?” which leads to Stage 4.

“What if I need the money?”

“Great question — and it’s the right one to ask. Most annuities allow you to withdraw up to 10% per year with no penalty. So if you put in $100,000, you could take out $10,000 any year you need it. The idea is that you’d put in money you’re not planning to spend next year — savings, CD money, funds you’re not touching. Does that make sense for how you’d use it?”

“I don’t want to tie my money up.”

“I hear that. Here’s how most of my clients think about it. They put in what they’re not planning to touch — the money that’s just sitting in savings earning almost nothing. Everything else stays liquid. The annuity handles the long-term piece. Would it make sense to figure out what that number looks like for you?”

“What if the company goes under?”

“It’s a fair concern. A few things protect you here. First, these carriers are rated by A.M. Best — an independent agency that scores financial strength. I only work with carriers rated A or better. Second, every state has a guaranty association that backs annuity policies up to a set limit — usually $250,000 per carrier. I can show you exactly where [Carrier Name] stands on both. Would that help?”

“I need to talk to my financial advisor / CPA / kids.”

“Absolutely — that’s smart. A lot of my clients bring this to their advisor. What I’d suggest is this: let me put together a one-page summary of exactly what we discussed — the product, the rate, the terms, the carrier rating. That way they have everything in front of them. When do you think you’d talk to them? [They answer.] Could we set a time to reconnect after that? Even just 15 minutes?”

Always book the next call before ending the current one.

“I’m not ready.”

“No pressure at all. Can I ask — is there something specific that’s holding you back, or is it more just needing time to think? [They answer.] That makes sense. Can I check back in with you in about 30 days? I’ll make a note so you don’t have to track it.”

Set the Bridge360 reminder before you hang up.

If the client has seen the illustration and has no outstanding objections:

“Based on everything we’ve talked about, does this feel like the right fit for you?”

If yes:

“Great. Let’s get the paperwork started. I’ll need a few pieces of information from you — it takes about 20 minutes. Do you have time now, or should we set something up for later this week?”

Never let a verbal yes go without a next step attached to it.

Within 30 days of issue, send a brief check-in:

“Just wanted to confirm everything is in order on your annuity — your first statement should be coming soon. While I have you, how are you feeling about everything? Anything you want to revisit?”

This is also when you ask for a referral:

“Do you know anyone else who might benefit from what we just set up? I’m always happy to take a conversation — no pressure, just information.”

Annuity clients refer more than almost any other product. They made a significant decision and feel good about it. That confidence transfers.

Print this page. Read each script out loud three times before your next client call. The words need to feel natural — not memorized, but familiar.

The goal is to sound like a helpful advisor who happens to know a lot about this, not someone reading from a script. The scripts get you there. Practice makes them yours.

IAD supports Medicare agents looking to expand into annuity and retirement income products — carrier contracts, training, illustrations, and field support.

Next Step: Explore IAD’s Carrier Directory or Schedule a consultation.

• How Medicare Agents Can Grow Revenue by Adding Annuities — Why annuities belong in your Medicare practice
• IAD Carrier Directory — Annuity carriers available through IAD