Agents can earn 1% to 10% of the total contract value in commissions, which are often "baked in" but ultimately reduce the starting value of your investment.
Optional features like death benefits or inflation protection add further annual expenses, potentially eating into the very returns they are meant to protect. 2. The "Liquidity Trap" and Surrender Charges don t buy annuities
Most contracts impose steep penalties—sometimes as high as 10% or more—if you withdraw funds during the first 6 to 10 years. Agents can earn 1% to 10% of the
Variable annuities can carry annual fees exceeding 3%, including mortality and expense (M&E) risk charges, administrative fees, and management fees for underlying subaccounts. and management fees for underlying subaccounts.