This is a core fee in Variable Annuities, typically averaging 1.25% annually. It compensates the insurer for the risk that you might live longer than expected (mortality risk) and for the administrative costs of the contract. This fee is deducted directly from the account value.

Riders that guarantee lifetime income (GLWB - Guaranteed Lifetime Withdrawal Benefits) generally cost between 0.25% and 1.00% of the account value annually. This fee is charged even if your account value drops. In 2026, it is vital to weigh whether the 1% cost justifies the income guarantee compared to a standard withdrawal strategy.

Typically, no. MYGAs function like CDs; the rate you see (e.g., 5.00%) is net of fees. The insurance company makes its profit on the "spread"—the difference between what they earn on their investments and what they pay you. There are usually no explicit administrative fees deducted from your balance unless you buy optional riders.

Surrender charges discourage early withdrawal. A typical 5-year MYGA schedule might look like this:

• Year 1: 9%
• Year 2: 8%
• Year 3: 7%
• Year 4: 6%
• Year 5: 5%
• Year 6: 0% (Liquid)
  Always check the schedule before buying to ensure it matches your liquidity needs.

Generally, no. In most fixed and indexed annuities, the commission paid to the agent is built into the product's design and paid by the insurer, not deducted from your deposit. You invest $100,000, and your account balance starts at $100,000. However, the costs are indirectly reflected in the caps or rates offered.

In a Variable Annuity, your money is invested in "sub-accounts" (mutual fund clones). These funds charge their own management fees, ranging from 0.60% to 3.00% annually, on top of the annuity's M&E charge. It is crucial to check the prospectus for total expense ratios.

Focus: Product Distinctions & Carrier Safety Ratings

• Stock Company: Owned by shareholders (investors). Their primary goal is to generate profit for shareholders.
• Mutual Company: Owned by the policyholders. Profits are often returned to policyholders in the form of dividends.‍
• Relevance: Mutual companies are often perceived as more stable and aligned with long-term policyholder interests, though both are highly regulated.

The Comdex is not a rating itself, but a composite ranking (1-100) based on the ratings of all major agencies (AM Best, S&P, Moody's, Fitch). A Comdex score of 90 means the company ranks higher than 90% of all other rated insurers. It is the single easiest metric for consumers to judge the relative financial strength of an annuity provider.

Risk allocation.

• FIA: The insurer takes the risk. Your principal is protected from market loss (0% floor), but upside is capped.
• VA: You take the risk. Your principal can drop if the market falls, but upside is uncapped.‍
• Choice: Choose FIA for preservation; choose VA for maximum growth potential if you can tolerate volatility.

A RILA (or "Buffer Annuity") is a hybrid between an FIA and a VA. It allows you to take some downside risk (e.g., you absorb the first 10% of losses) in exchange for significantly higher caps or participation rates than a standard FIA. This product is growing in popularity for 2026 investors seeking more growth than bonds can offer.

You should look at independent ratings from agencies like A.M. Best (A++ to B+ are considered secure), Standard & Poor's, and Moody's. Do not rely solely on the brochure. A "B++" rating or higher is generally recommended for long-term security. The "Comdex" score combines these into a single easy number.

Direct-sold (no-commission) annuities often have lower fees or higher rates because the carrier doesn't pay an agent commission. However, you forego the advice and planning expertise of a professional. If you are a sophisticated DIY investor, a direct-sold product (often fee-based) may be more efficient.