Annuity Commissions?

Question

I'm looking at signing on with a company to sell insurance. Am I nuts or is .5% very low for agent commissions on a fixed annuity? .... Please notice the decimal that is placed in front of the number 5!

Answer 1

That sounds low if you only get paid once.  I have seen commissions in that area if the annuity has no surrender charge or renews each year.  In that case, not only would your client have no surrender charges, but you get paid .5% each time they renew that contract.

I should take a moment to also express my concern about suitability if the commission is above 6%.