2. Expenses among the highest of any product
Most people purchase variable annuities due to its income guarantees, however, there is 0.4% to 0.75% fee associated with such guarantee.
Since most variable annuities are invested in mutual fund type of subaccounts, there is another layer of fees which could range from 0.4% to 1.75%.
Furthermore, variable annuities have basic death benefit, as a consequence, there will be mortality and expense fee that can range from 0.40% to 1.75%.
Add all the fees up you could face fees that range from 3.50% to 4% or even higher!