Each type of annuity has a different way of charging fees; with variable annuity fees, all fees are disclosed in the prospectus. With fixed and immediate annuities, the insurance company gives you a quote that is net of all fees. Find details below.
1. Variable Annuity Fees
Variable annuity fees can be as high as 3.00% or more per year. Take the time to understand all the fees and charges before you buy. Here is a list of the specific variable annuity fees to inquire about.
2. Fixed Annuity Fees
Most fixed annuities don’t have fees that you see other than perhaps an annual policy fee (perhaps $25 - $50 per year), which is often waived if you invest a minimum specified amount (such as $25,000). If there are no fixed annuity fees, than how does the insurance company make money? Find out how at the link above.
