Annuities provide living benefits and are sold by insurance providers who employ various staff, including actuaries, wholesalers, agents, marketers, and brokers. The insurance company invests premiums in stocks and fixed interest accounts, and income payments end with the claimant’s death. Annuities are aimed at retirees, and marketing employees work with market research firms to discover the best way to market new annuity products.
Annuities are life insurance products that provide contract owners with benefits of living, such as lump sum cash payments or monthly rent payments. These products are sold by insurance providers who employ a variety of administrative and sales staff in many different types of annuity jobs. Typically, annuity jobs include actuaries, wholesalers, insurance agents, marketers and brokers.
When an insurance company enters into an annuity contract, the buyer of the contract pays a premium to the insurer and the insurer promises to provide the claimant with periodic income payments that will exceed the amount of the premium. The insurance company invests premiums in stocks and fixed interest accounts, but the insurer could lose money in the long run if the returns from these investments do not cover the cost of monthly annuity payments. Income payments usually end with the claimant’s death, meaning the insurer makes money if claimants die sooner than expected. Consequently, actuarial positions are among the most important annuity jobs because individuals who fill these roles must use historical data to calculate average mortality rates. Insurance companies base premiums and monthly payments on information that actuaries prepare.
Wholesalers are sales employees who are responsible for instructing independent sales agents about annuity products. These individuals typically cover a particular region and attempt to negotiate sales agreements with banks and other financial firms that employ large numbers of agents. Some companies employ an in-house wholesaler who provides ongoing marketing support to sales agents, but they also employ a remote wholesaler who conducts real sales presentations alongside the agents.
Many insurance companies primarily sell products through independent agents and other financial companies. However, some companies also employ inside sales agents who are able to sell products as annuities directly to consumers. Agents must pass licensing exams, and in many countries insurance agents are also required to have securities licenses to sell complex products such as indexed or variable annuities. In many cases, the insurance company covers the cost of obtaining the license, but sales agents are usually paid commissions rather than salaries.
Annuities are primarily aimed at retirees or people close to retirement age, as the products offer beneficiary income benefits that can be especially helpful for people in this age group. Consequently, many insurance companies have annuity jobs for marketers. These employees must work with market research firms to discover the best way to market new annuity products.
Marketing employees also have to plan large advertising campaigns and are responsible for branding annuity products. Premiums on annuities are usually invested in securities such as stocks and bonds, and insurance companies employ licensed investment brokers who can buy and sell securities with annuity funds. Like sales agents, brokers are generally paid commissions rather than base salaries.
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