Who Actually Sells Annuities? (And Why It Matters More Than You Think)

If you've Googled "who sells annuities," you've probably landed on something like "insurance agents or financial advisors." Technically correct. Also about as useful as telling someone to "just hit it straight."

Let me actually explain it.

---

The One Thing You Need to Know First

Annuities are insurance products. So the person selling them needs a life insurance license — not a stockbroker license, not a CFP designation, not a real estate license. A life and health insurance license.

For fixed annuities — including Fixed Indexed Annuities (FIAs), which is my world — that's it. No securities license required.

Variable annuities are a different animal. They carry market risk, they're classified as securities, and the person selling them needs a FINRA securities license on top of the insurance license. Different lane entirely. I don't play in that lane.

---

The Different Types of People Who Can Sell You One

Think of the annuity world like different kinds of courses with different kinds of caddies.

Independent Insurance Agents This is me. I'm not on any carrier's payroll. I work with multiple companies, which means I can actually shop the market for your situation instead of defaulting to whatever my employer happens to sell. I work for you, not for a quota.

Captive Agents These are the agents employed by one specific company. They know their product cold — but it's the *only* product they can offer you. Like a caddie who only knows one course and insists it's the best one no matter where you're playing.

Banks and Credit Unions Banks sell annuities too, usually through a carrier partnership. Convenient if that's where your accounts already live. Less convenient when you realize the "advisor" you're talking to has about fifteen other things on their plate and annuities are maybe 10% of what they do.

Broker-Dealers and Financial Advisors If they're licensed for both insurance and securities, they can sell both fixed and variable. Some are fee-only, meaning they don't take commissions at all — they might refer you to someone who can actually execute the annuity piece.

---

"Licensed" Is the Starting Line, Not the Finish

Here's the analogy that actually matters:

Any golfer can hand you a club. Doesn't mean they should.

A good caddie has read the course, knows the conditions, understands your game, and is handing you the right club for the right shot — not whatever they grabbed first or whatever looks impressive in the bag.

Plenty of people are licensed to sell annuities. Far fewer have gone deep enough to understand crediting strategies, index options, rider mechanics, and how any of it fits your actual retirement picture.

Before you sit down with anyone, ask:

- What percentage of your business is annuities specifically? - Do you work with one carrier or multiple? - How are you compensated? - Can you walk me through how different products compare for my situation?

If they get squirrelly on any of those, you've got your answer.

---

The Commission Conversation (Yes, We're Having It)

Annuity agents are paid by the insurance carrier, not by you. You're not writing anyone a check at the end of the meeting. The commission is baked into the carrier's pricing structure.

That said — commission rates vary by product, and that's worth knowing. It's one reason some agents steer clients toward products that aren't the best fit. An independent agent working across multiple carriers has less incentive to do that, since commission rates tend to be pretty comparable across the board.

I'll always tell you how I'm paid. If an agent won't, that's a flag you shouldn't ignore.

---

Why the "Who" Actually Matters

I've seen retirees end up in annuities that weren't right for them. Not because the product was bad — because the agent didn't ask enough questions first.

Your income timeline, liquidity needs, tax situation, Social Security strategy, legacy goals — all of it affects whether an annuity belongs in your plan, which kind, and how much. Skip that work and you're just buying a product. Do it right and you're building a strategy.

A caddie who doesn't know your game can't read the course for you. That's not a knock on the caddie — it's just the truth.

---

The Short Version

Annuities are sold by licensed insurance professionals. But licensed just means they're allowed to be on the course. It doesn't tell you whether they'll actually help you shoot a better round.

Find someone independent, find someone who specializes, and find someone willing to explain everything before they ask you to sign anything.

That's the job. That's what I do.

*Educational content only — not investment advice. Licensing requirements vary by state and product type.*