What are the fees and charges associated with variable annuities?

The fees and charges associated with variable annuities vary depending on the specific policy and the insurance company offering it. However, common fees include mortality and expense risk charges, administrative fees, investment management fees, and surrender charges. Mortality and expense risk charges cover the insurance company's costs for providing death benefits and guaranteed income options. Administrative fees compensate for policy maintenance, record-keeping, and customer service. Investment management fees are associated with the underlying investment options within the variable annuity. Surrender charges may apply if the policyholder withdraws or cancels their annuity early. It is crucial to review the prospectus and contract terms of a variable annuity to understand the specific fees and charges before making any decisions.