Where to Buy an Annuity: The Best Options for You

Shawn Plummer

CEO, The Annuity Expert

When it comes to buying an annuity, many options are available. For example, you can buy an annuity from an insurance company, a bank, or an investment firm. So, where is the best place to buy an annuity? That depends on your individual needs and goals. This guide will explore the options for buying an annuity and help you decide which is best for you!

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Where Can I Buy An Annuity?

You can buy an annuity in three main places: insurance agencies, banks, and investment firms. Each option has pros and cons, so it’s essential to understand the difference before deciding. Let’s dive in on how to set up an annuity with various places.

  1. Insurance Companies: They are the primary sellers of annuities. You can buy directly from them, bypassing brokers and potentially saving on commissions.
  2. Banks and Brokerage Firms: Many institutions partner with insurance companies to offer annuities.
  3. Online Marketplaces: There are now digital platforms dedicated to comparing and selling annuities.

Insurance Agency

The main advantage of buying an annuity from an insurance agency is receiving professional advice from an agent. They will help you choose the right type of annuity and rider (options that can be added to your annuity contract) based on your needs.

However, one downside is that some insurance agencies are “captive” agencies, meaning they only sell products from one company. This can limit your options and make it difficult to compare rates. Be sure to look for an “independent” agent to offer you various options.


One benefit of buying an annuity from a bank is that you may already have a relationship with the bank, making the process easier. Additionally, banks typically have lower fees than other financial institutions. However, it’s essential to remember that not all banks offer annuities. And those that do may only offer a limited number of options.

Investment Firms

If you’re comfortable working with an investment firm, this can be a good option for buying an annuity. Investment firms typically have more experience and knowledge about annuities than banks and may encourage you to buy investments like stocks and bonds instead.

Where To Buy An Annuity

Choosing the Right Path: Broker or Direct Purchase

The traditional route of buying an annuity is via a financial advisor or an annuity broker. However, this could mean shelling out for commission fees. So, what’s the cheapest way to buy an annuity? Cutting out the middleman and buying directly from an insurance company. It’s more straightforward than it seems, and we’ll guide you through the process.

Debunking Common Myths

  • Fee-based annuities require the owner to pay regular out-of-pocket fees. In contrast, the insurance company pays for commission-based annuities and does not positively or negatively impact the contract.
  • An advisor, agent, or broker sells almost all annuity sales. Those sold directly from the insurance company are typically poor-performing products.
  • Cutting out the middleman can lead to a poor annuity buying decision. There are more poorly designed annuity contracts than those that can truly enhance a retirement.
Where To Buy Annuities

The Risks When Buying From The Wrong Place

Now that you know the different places to buy an annuity, you must understand the risks of buying from the wrong one. For example, buying from an insurance agency, bank, or investment firm comes with different risks.

An annuity is as good as the person who sells the annuity to you. Common risks involved in buying annuities are:

  • The seller may have little to no experience in annuities and recommend a poorly created product.
  • The seller may have a conflict of interest. For example, if they’re selling you an annuity from their company (captive agent), they may not tell you about another one that fits your needs better.
  • The seller may pressure you into buying an annuity with high fees, which isn’t suitable for you.
  • You may not be able to get your money back if you change your mind after buying the annuity.
Where Can I Buy An Annuity

Next Steps

Now that you understand the risks associated with buying an annuity from each type of provider, you must contact us for a quote. We can help you find the best annuity for your needs and ensure you maximize your investment. With our help, you can feel confident in buying an annuity and enjoy knowing your retirement is taken care of.

Where To Buy An Annuity

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Where to Buy 4% Annuities?

Finding a specific 4% annuity might seem challenging, but it’s a matter of doing your research. It is crucial to check various insurance companies, financial institutions, and online platforms for available options. Interest rates can vary, so thoroughly reviewing your annuity contract’s terms and conditions is essential.

Where to Directly Buy an Annuity?

Most insurance companies offer the option to buy directly, either through their website or via a phone call. Directly purchasing your annuity can save you money, allowing you to control the process.

Where Do I Buy Annuities Without a Broker?

They are interested in how to buy an annuity without a broker. Online platforms have made this feasible. Websites like The Annuity Expert serve as marketplaces where you can compare rates and terms from different insurance companies, allowing you to make an informed choice.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

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

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