Sales of fee-based annuities are growing rapidly, reaching about $8 billion this year, though they still represent a small fraction of the $430 billion total annuity market. LIMRA projects $6.9 billion in fee-based variable annuities and $1.1 billion in fee-based fixed-indexed annuities for 2025, nearly doubling since 2022. 

Industry experts noted that while most sales still come from traditional 1035 exchanges, a rising share now involves new money, signaling growing advisor engagement. Insurers like Jackson National are developing fee-friendly products such as Jackson Income Assurance, which allows advisors to draw fees directly from contracts without reducing client benefits. 

Prudential Financial is also expanding in this space with ActiveIncome, an insurance overlay built for RIAs that preserves asset control while providing lifetime income. 

Finusm: These innovations aim to reduce friction between insurers and advisors, marking a structural shift toward fee-based, client-aligned annuity solutions.