1. Highest Commissioned Product
Variable annuities are among the most profitable products sold by insurance companies and brokerage firms. Variable Annuity pays the financial advisors who sell it the highest commissions of any insurance or investment product available - the commissions could be as high as 7% of premiums paid.
With such high commission around, you can bet there is a tremendous conflict of interest baked into any discussion of these products with you - the buyer!
The insurance company wholesalers have spent a lot of time with the brokers - to convince them variable annuity is a product that the end buyers need in order to address the fear of losing money. And oh, by the way, as a seller, you can also earn a gross commission of up to 7%.
Sounds like a win/win transaction, isn’t it?
But let’s take a closer look.