Before an agent starts an insurance career in Annuities, they must understand what annuities are and how they work. Annuities are considered insurance and investments because the client invests money and the carrier of the annuity guarantees payment of the annuity either immediately or after a certain period of time. When the client begins to take a payment from the funds that were invested (annuitizes), the annuity pays them a certain amount of income for the rest of the client's life. For this reason, clients are often looking to protect themselves from outliving their investments. Annuities can also offer clients a tax-deferred investment, which many investors find attractive.
More and more people need to invest their money in personal retirement options. Many agents who have an insurance career selling Annuities find it very rewarding because they have a job that involves helping their clients obtain financial security for their retirement years. Selling Annuities can also provide a substantial income. With average commissions hovering around 7%, an agent can make $7,000 by selling only one $100,000 Annuity. Agents who choose insurance jobs in Annuities commonly choose to take up-front commissions, but residual commissions are an option.