What should an agent primarily assess before recommending an annuity?

Before recommending an annuity, the primary focus of an agent should be on the client’s financial situation and investment objectives. This is critical because an annuity is a financial product designed to provide income over time, often during retirement. Understanding the client’s current financial status, including their income, expenses, existing assets, and liabilities, allows the agent to tailor recommendations that meet the specific needs and goals of the client.

Additionally, the agent must consider the client's investment objectives, such as their risk tolerance, time horizon, and desired outcomes, whether that be growth, security, or income generation. By aligning the annuity product with the client's unique financial profile and future goals, the agent ensures that the recommendation is suitable and beneficial, thus helping to foster a long-term, trusting relationship between the client and the advisor.