Annuity (US Financial Products) - Compensation For Advisors or Salespeople

Compensation For Advisors or Salespeople

Deferred annuities, including fixed, fixed indexed and variable, typically pay the advisor or salesperson 1 percent to 10 percent of the amount invested as a commission, with possible trail options of 25 basis points to 1 percent. Sometimes the advisor can select his payout option, which might be either 7 or 10 percent up front, or 5 percent up front with a 25 basis point trail, or 1 percent to 3 percent up front with a 1 percent trail. Trail commissions are most common in variable annuities while fixed annuities and fixed indexed annuities typically pay an up front commission.

Some firms allow an investor to pick an annuity share class, which determines the salesperson's commission schedule. The main variables are the up-front commission and the trail commission.

Fixed and Indexed Annuity commissions are paid to the agent by the insurance companies the agent represents. Commissions are not paid by the client (annuitant).

"No-load" variable annuities are available on a direct-to-consumer basis from several no-load mutual fund companies. "No-load" means the products have no sales commissions or surrender charges.

Read more about this topic:  Annuity (US Financial Products)

Famous quotes containing the words compensation for, compensation and/or advisors:

    ... the compensation for a death sentence is knowledge of the exact hour when one is to die. A great luxury, but one that is well earned.
    Vladimir Nabokov (1899–1977)

    The only compensation which war offers for its manifold mischiefs, is in the great personal qualities to which it gives scope and occasion.
    Ralph Waldo Emerson (1803–1882)

    Whoever gives advice to the sick gains a sense of superiority over them, no matter whether his advice is accepted or rejected. That is why sick people who are sensitive and proud hate their advisors even more than their illnesses.
    Friedrich Nietzsche (1844–1900)