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Are Annuity Commissions Too High?

Written By: The Annuity Guys

Most of the mainstream media decries annuities as bad investment choices sold by unscrupulous agents solely to earn high commission.

CNN/Money even states “annuities frequently charge other high fees as well, usually including an initial commission of up to 10% of your premium or investment”. The key word in this statement is “up to” – the majority of fixed annuities today are in the five to seven percent range assuming the agent elects to take the commission up front. It is important to keep in mind that commission on an annuity will not reduce the annuity’s account value. Licensed agents are typically paid commissions directly from the insurance company based on state regulation.

Dick and Eric examine annuity commissions and how they compare across annuity types as well as looking at how these commissions compare to investment fees and commissions in the educational video below.

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