Variable Annuity Fees

Variable Annuity Fees Since variable annuities offer insurance features they have charges and fees not found with other investment products.

Variable annuity fees. 125 of account value. Average account value 10000. You will pay 75 in administrative fees.

Your average account value during the year is 50000. Annuity holders see the charge on their annuity statement. These fees can be referred to as expense ratios 12b-1 fees or service fees.

One should expect to pay roughly 3 to 4 of your current contract value each year. Fees for both riders are deducted annually from the annuitys account value. Annual mortality and expense risk charge.

Annual mortality and expense risk charge during the year. CREF Global Equities Account R3 Variable annuity QCGLIX 0270 0100 CREF Social Choice Account R3 Variable annuity QCSCIX 0240 0100 TIAA Real. Many variable annuity policies have a separate administrative fee to cover the cost of mailings and ongoing service.

Your average account value during the year is. Charges and fees also differ by variable annuity. It is also important to keep in mind that most variable annuity contracts allow provisions for these fees to be increased or decreased and one should take note of the maximum possible charges.

Conclusion This is but a small part that makes up the confusion surrounding variable annuities. When you buy into a variable annuity your money is tied to an underlying investment. Variable annuities have investment and management fees.