If you hold a life insurance license, chances are that a client has already asked you about annuities. Maybe they're worried about outliving their savings, or they've heard the word and want to know if it's right for them. The problem is, in most states, you can't actually sell them until you complete annuity training. Here's what annuity training actually covers, why it's worth adding to your toolkit even if you weren't planning on selling annuities, and exactly how many hours you'll need.

Summary

Annuity training is a state-mandated course, typically four hours, that agents must complete before recommending or selling annuity products. It's required in nearly every state and is separate from your general pre-licensing education and continuing education. XCEL offers both the initial annuity training and the ongoing CE agents need to keep selling.

What Are Annuities?

An annuity is a contract between you and an insurance company. Your client pays into it, either as a lump sum or through a series of payments, and in return the insurer agrees to pay that money back out over time, often as guaranteed income for life. It's essentially a way to turn savings into a paycheck that can't be outlived.

Annuities generally fall into a few main categories:

Fixed annuities: Pay a guaranteed interest rate, offering predictable, low-risk growth.
Fixed indexed annuities (FIAs): Credit interest based on the performance of a market index, with built-in protection against losses.
Variable annuities: Let the client invest in subaccounts similar to mutual funds, with returns tied to market performance.
Registered index-linked annuities (RILAs): A newer hybrid product that offers more upside potential than a fixed indexed annuity in exchange for taking on some downside risk.
Immediate vs. deferred annuities: Immediate annuities start paying out right away; deferred annuities grow for a period before payments begin.

Each type serves a different client need, so matching the right product to the right person is a central theme in annuity training.

Why Sell Annuities?

Annuities aren't a niche product anymore. U.S. annuity sales climbed 6% to a record $461.3 billion in 2025, and the fourth quarter alone brought in $114.4 billion, the ninth straight quarter to top $100 billion. That growth isn't a fluke. As more US residents reach retirement age without pensions to rely on, demand for guaranteed income products keeps climbing, and indexed annuities alone now make up 45% of total annuity sales, nearly double their share from a decade ago.

For agents, this trend translates into real opportunity. Annuities are one of the fastest-growing product lines in insurance, and the demand for retirement income solutions isn't slowing down. Likewise, for agents who add annuities to their service offerings, you can create a bigger retirement conversation with your clients, which opens the door to discussing life insurance, long-term care, and other coverage options.

Keep in mind that annuities typically carry higher commissions than many other insurance products. If you already hold a life insurance license, annuity training is a relatively small lift that opens up a significant new revenue stream.

What Is Annuity Training?

Annuity training is a state-required course that teaches agents how to responsibly recommend and sell annuity products. It grew out of the National Association of Insurance Commissioners' (NAIC) Suitability in Annuity Transactions Model Regulation, which nearly every state has adopted in some form.

The course covers things like:

The different types of annuities and how they work
How to evaluate a client's financial situation, goals, and risk tolerance
The "best interest" standard, which requires you to prioritize the client's needs over your own compensation
Disclosure requirements and required documentation
Common product features, riders, and surrender charges

Annuity training is separate from, and in addition to, your general pre-licensing coursework and your regular continuing education (CE) requirements. Even a seasoned agent with years of experience selling life insurance can't legally solicit an annuity sale until this training is complete. On top of state-required annuity training, most insurance carriers also require their own product-specific training before you can sell their annuity contracts, so plan for both.

How Much Annuity Training Do I Need?

For most agents, the answer is a one-time, four-hour course. That's the standard set by the NAIC's model regulation, and it applies whether you're brand new to annuities or you've been selling other insurance products for years.

A few things to keep in mind:

For most states, it's a one-time requirement, not a recurring one. Once you've completed the initial four-hour course, you generally don't need to repeat it, unless your state updates its regulations.
Updates may require a shorter refresher. When a state adopts a revised version of the NAIC model regulation, agents who already completed the original four-hour course are often given the option to complete a one-hour update course instead of starting over, usually within a set window (commonly six months) of the new rule taking effect.
Requirements vary slightly by state. A handful of states, including California and New York, have their own annuity training rules that don't always align with other states, so it's worth double-checking your specific state's requirement before you get started.
Carrier-specific training is separate. Beyond your state-required course, individual insurance carriers typically require their own product training before you can sell their annuities, so budget time for that as well.

Annuity CE

In most states, the four-hour annuity training course is a true one-and-done requirement: complete it once, and you're set unless your state adopts a new version of the NAIC model regulation down the road. But several states have moved toward treating annuity education the same way they treat ethics or law-and-rules training, as an ongoing CE requirement you have to satisfy every renewal period, not just at the start of your career.

The specifics of these requirements, however, vary by state:

Recurring annuity CE hours. States like Texas require agents to complete 8 hours of annuity-specific CE during every two-year license period after their initial 4-hour certification, and those hours count toward the state's overall CE total.
Ongoing training every renewal. California takes a similar approach: after an initial 8-hour course, resident and non-resident producers who sell annuities must complete a 4-hour annuity suitability and best interest course before every license renewal, not just once.
A hybrid model. Some states only trigger a new round of annuity training when the regulation itself changes, meaning that you might go several renewal cycles with no additional annuity CE, then suddenly need a 1-hour update (or a full 4-hour course, if you miss the update window) the next time your state revises its rules.
No separate annuity CE at all. In other states, once you've completed the initial training, annuity-specific coursework never becomes a recurring CE category, though your regular ethics and law-and-rules hours still apply as usual.

Because these rules genuinely differ agent to agent, not just state to state, it's worth checking both if your state requires recurring annuity CE hours and whether it's recently adopted an updated version of the NAIC model regulation that could trigger a refresher.

Your state's Department of Insurance and an approved provider like XCEL can confirm exactly what's due each cycle, so you're never caught off guard mid-renewal.

Get Your Annuity Training and CE with XCEL

Whether you're adding annuities to your book of business for the first time or you need to knock out a state-mandated refresher, XCEL makes it simple. We offer both the initial annuity training course and the ongoing continuing education you need to keep selling, built by insurance education experts and approved in your state.

Ready to start recommending annuities with confidence?

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Annuity Training FAQs

Is annuity training required in every state? 

Nearly every state has adopted some version of the NAIC's Suitability in Annuity Transactions Model Regulation, which requires annuity training before you can sell annuity products. A small number of states, like California and New York, have their own distinct requirements, so always confirm your specific state's rules.

How long does annuity training take? 

The standard course is four hours. Agents who previously completed annuity training and need to comply with an updated state regulation may qualify for a shorter one-hour update course instead. However, it’s most important to review your state’s requirements to find out exactly what training you need.

Do I need to retake annuity training every renewal period? 

It depends on your state. In most states, the initial four-hour course is a one-time requirement unless your state adopts an updated regulation. But some states, like Texas and California, require ongoing annuity CE every renewal period.

Is annuity training the same as my regular insurance CE? 

No. Annuity training is a distinct prerequisite focused specifically on suitability and best interest standards, but the course hours can typically count toward your total required CE hours. And while the initial annuity training is one-time requirement in many states, some states (like California and Texas) require ongoing annuity CE during every renewal cycle.

Can I sell annuities with just my life insurance license? 

You need a life insurance license to sell most annuity products, but the license alone isn't enough. You must also complete your state's annuity training before you can legally recommend or sell them.

Where can I complete my annuity training? 

XCEL offers state-approved annuity training courses alongside our full library of insurance CE, so you can meet this requirement and stay current on the rest of your licensing needs in one place.