Data Hub Last reviewed: 2026-10-03 Part of Annuity reviews

Annuity Commissions by Product: Why MYGAs and SPIAs Don't Get Pushed

Written and reviewed by Hans Goldstein, licensed insurance producer, NPN 20602398 · CA Insurance License #4273294
Last reviewed October 3, 2026 · Published October 3, 2026

Short answer: the insurer, not you, pays the agent, and the commission rises with the product's complexity and surrender length. Public industry data (Wink, Q1 2018) put average commissions at about 2.29% of premium on multi-year guaranteed annuities (MYGAs), 4.18% on fixed annuities and 6.26% on indexed annuities. The simplest products, MYGAs and immediate annuities (SPIAs), pay the least, which is one reason they are pitched the least.

The public numbers

Average annuity commission as % of premium, by Wink category (Q1 2018)

Source: InsuranceNewsNet, citing Wink's Sales & Market Report (Q1 2018 commission averages). Industry averages for the first quarter of 2018 as reported by InsuranceNewsNet; the most recent public averages found. Individual products vary by insurer, term, issue age and state.

Commission by product type

Product type	Typical commission (public anchor)	Surrender period	Notes
MYGA (multi-year guaranteed annuity)	About 2.29% average (Wink, Q1 2018)	Usually matches the guarantee term, 2 to 10 years	Lowest-paying mainstream annuity
SPIA / DIA (income annuities)	Low; no verified public average yet	None: the premium is converted to income	Irrevocable, no surrender schedule to recoup a big commission
Fixed annuities, all (Wink category)	About 4.18% average (Wink, Q1 2018)	Varies	Includes MYGAs and other fixed designs
Fixed indexed annuities (FIA)	About 6.26% average (Wink, Q1 2018)	Often 7 to 10+ years	Longer surrender and bonus designs tend to pay the most
RILA and variable annuities	Set out in the prospectus	Per prospectus	Securities sold by registered representatives. Hans does not sell them.

Industry averages only, not any insurer's schedule. Sources: InsuranceNewsNet, citing Wink's Sales & Market Report (Q1 2018 commission averages); SEC Investor.gov: Annuities; FINRA: Annuities.

Why commission tracks surrender length

The insurer pays the agent up front, on day one. It earns that money back over the years from the spread between what it earns on your premium and what it credits you. If you leave early, it has not recovered the cost yet, so the surrender charge recovers it from you instead. The general pattern follows: a longer surrender period lets the insurer recoup a bigger up-front commission. A 10-year indexed annuity can support a larger commission than a 3-year MYGA because the insurer expects your money for longer. More on that in why annuity commissions vary by age, term and chargebacks.

Second opinion

Was a simpler annuity skipped for you?

Send your email and I'll send today's MYGA rates next to what you were quoted, plus the questions to ask about commission and surrender length.

We’ll email it to you. Hans Goldstein · NPN 20602398.

Rather talk it through? Or book 15 minutes on Hans’s calendar.

Why MYGAs and SPIAs don't get pushed

Put the two facts together. MYGAs pay the least, and SPIAs have no surrender schedule at all. An agent paid only on commission earns less by recommending them, even when a guaranteed fixed rate or a guaranteed income check is exactly what the client needs. That is an incentive structure, not a claim that agents lie, and it is worth knowing when a simple product is waved away in favor of a complex one.

Hans's practice leads with MYGAs for safe money because they are the easiest to understand: a fixed rate for a fixed term, backed by the insurer. Current rates are on the best MYGA rates page. A MYGA earns its place on the facts; the lower commission just means no one is paid extra to point you at it.

Questions to ask any agent before you sign

What do you earn on this contract, in dollars, and is it paid once or over time?
How long is the surrender period, and what does it cost to leave in each year?
What is the next simplest product that solves my problem, and what would you earn on that?
Is there a bonus, and how is it paid for (a lower rate, a longer surrender period, or both)?
Under California Insurance Code §10509.9204, will you put your compensation in writing?

Your right to see the commission in California

Since January 1, 2025, California requires agents to disclose, on request, how they are paid on an annuity sale, and to give a written estimate when asked (SB 263, Insurance Code §10509.9204, California SB 263). Most buyers do not know they can ask. Hans states his own compensation on any contract in writing, on request, before you sign.

For a consumer walk-through of a commission disclosure, read how to read an annuity commission disclosure. For who actually pays, see who pays the annuity agent, and for commission vs an advisory fee, MYGA commissions vs fee-only advisors.

Cite this page

APA: Goldstein, H. (2026, October 3). Annuity commissions by product: why MYGAs and SPIAs don't get pushed. hansgoldstein.com. https://hansgoldstein.com/annuity-reviews/annuity-commissions/

MLA: Goldstein, Hans. "Annuity Commissions by Product: Why MYGAs and SPIAs Don't Get Pushed." hansgoldstein.com, 3 Oct. 2026, hansgoldstein.com/annuity-reviews/annuity-commissions/.

HTML link: <a href="https://hansgoldstein.com/annuity-reviews/annuity-commissions/">Annuity commissions by product (Hans Goldstein)</a>

Methodology and changelog

Method. Only public sources: industry averages reported from Wink's Sales & Market Report, regulator and investor-education materials (NAIC, CDI, SEC, FINRA) and California law. No insurer or marketing-organization commission schedule is used, quoted or paraphrased; those are confidential under appointment agreements. No insurer is named next to a commission figure. Figures are industry averages for the stated period and vary by insurer, product, term, issue age and state.

Changelog. 2026-10-03: page published with Wink Q1 2018 anchors. Next review: January 2027, or sooner when a newer public average is found.

Quoted an annuity? Ask what the agent earns.

Send the quote. Within one business day Hans tells you, in writing, what a comparable MYGA pays you and what he would earn on it, so you can compare both sides.

Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer

Frequently asked questions

How much commission does an agent make on an annuity?

Public industry data from Wink for the first quarter of 2018 put average commissions at about 2.29% of premium on MYGAs, 4.18% on fixed annuities and 6.26% on indexed annuities. The insurer pays it, and it varies by product, term, age and state.

Why do agents push indexed annuities over MYGAs?

Indexed annuities usually carry longer surrender periods, which let the insurer pay a bigger up-front commission. MYGAs and immediate annuities pay the least, so a commission-paid agent earns less by recommending them.

Do I pay the annuity commission?

Not as a line item. The insurer pays the agent and credits your full premium. The cost is built into the rate and recovered through surrender charges if you leave early.

Can I ask what my agent earns on an annuity in California?

Yes. Under California Insurance Code §10509.9204, effective January 1, 2025, an agent must disclose compensation on request and provide a written estimate when asked.

Do variable annuities and RILAs pay commissions?

Yes. They are securities sold by registered representatives, and their compensation is described in the prospectus. Hans does not sell them.

Sources

Hans Goldstein, CA Insurance License #4273294 · NPN 20602398 · Goldstein & Co. LLC dba Goldstein Insurance Services, CA License #6016830

Contact: hans@hansgoldstein.com · 213-414-2808

General education, not tax or legal advice. Tax treatment depends on your facts and on current law, which can change. Talk to your CPA or estate attorney. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Guarantees apply only to the contractual terms of the policy. Caps, participation rates, loan rates, charges and dividends are not guaranteed and can change. Hans is paid a commission by the insurer if you buy a policy through him. For life insurance, ask and he will tell you what he earns on your specific policy. Product and company names are trademarks of their owners. Goldstein Insurance Services is an independent agency, not affiliated with or endorsed by any insurer named here. Commission ranges cited are from the public sources listed and vary by insurer, product, term, issue age and state. Annuities have surrender charges and other limitations; read the contract and disclosure before you buy.