Why Selling Annuities Can Be a Boost for Your Life Insurance Business

In a financial world increasingly focused on longevity and reliable income, annuities have surged in popularity. LIMRA reports that annuity sales in the U.S. topped $119 billion in the second quarter of 2025, representing an 8% increase from the previous year.

Common types of fixed annuities

If you’re looking to sell annuities, understanding the common types available is crucial. Annuities primarily fall into two categories: immediate and deferred:

• Immediate annuities provide a guaranteed* income stream starting right away, typically purchased with a lump sum, making them ideal for clients nearing or in retirement.
• Deferred annuities, on the other hand, are purchased during the savings years and can be funded with periodic payments, offering tax-deferred growth until the client is ready to access the funds.

Within these categories, there are fixed, variable, and indexed annuities:

• Fixed annuities offer a guaranteed credited interest, providing predictable income.
• Indexed annuities offer growth opportunities beyond fixed annuities while offering an additional level of protection against losses.

Key takeaways

1. 1. Annuities continue to surge in popularity. But many life insurance agents and brokers don’t realize how easy it is for them to add annuities to their portfolio.
   2. You only need a life insurance license and continuing education to sell annuities and grow your business.
   3. Annuities can address critical needs that your life insurance clients may have for guaranteed retirement income, tax-advantaged growth, and wealth transfer.