Do Financial Advisors Make Money Off Annuities?

Shawn Plummer

CEO, The Annuity Expert

Two Main Ways Advisors Earn from Annuities

  1. Commission-Based Earnings
    • How it Works: Financial advisors earn a commission directly from the insurance company offering the annuity.
    • Impact on Annuity: This commission does not affect the annuity’s value or the benefits the owner receives.
  2. Fee-Based Earnings
    • How it Works: Advisors charge an ongoing fee to the annuity owner.
    • Impact on Annuity: This fee directly affects the annuity’s value, as it is deducted from the account.

Related Reading: How do health insurance brokers get paid

Understanding the Impacts

  • Commission Model: The advisor’s commission is typically a percentage of the annuity contract’s value. It’s a one-time payment made by the insurance company, ensuring the advisor’s compensation doesn’t reduce the annuity’s worth.
  • Fee Model: This approach aligns the advisor’s ongoing interests with the annuity owner. The fee might be a percentage of the annuity’s value, thus varying as the value changes. It directly reduces the annuity’s value over time.

Related Reading: What Are the Reasons Some Financial Advisors Dislike Annuities?


Both commission and fee models offer different advantages and implications for annuity owners. Understanding these can help in making informed decisions about annuities and the role of financial advisors. Contact us today for a free quote.

Request A Quote

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top