Annuity Commission Estimator
Transparency matters. Find out how much of your premium goes toward agent commissions based on standard industry rates.
This is paid by the insurance company, not out of your pocket.
Are you paying the commission?
I genuinely believe that the biggest myth in the insurance world is that "commissions are bad." In most cases, the commission is paid by the insurance company as a marketing expense. It doesn't get deducted from your $100,000 deposit. However, high commissions usually mean the product has longer "surrender periods" (where you can't take your money out without a penalty).
Commission Rates: Rates vary by age and state, but 3% to 7% is the standard range. If an agent is pushing a specific product very hard, check if it's a Variable Annuity—those typically offer the highest payouts to the person selling them.
What to ask your agent:
- "How long is the surrender period?"
- "What is the internal fee (M&E) for this variable annuity?"
- "Are there lower-commission options with better rates?"