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- Overview
- Anatomy of a variable annuity
Anatomy of a variable annuity
Last reviewed: December 2009
Here's a breakdown of the annual cost of the Best of America Choice Venue Variable Annuity II from Nationwide, a moderately priced annuity from a stable insurer. We chose typical options and one of the cheapest mutual funds of the more than 50 available.
| Option | Fee |
|---|---|
| Mortality and expense risk | 1.30% |
| Administrative services | 0.20 |
| Death benefit | 0.35 |
| Spousal protection | 0.20 |
| 5% lifetime income | 1.00 |
| Fidelity Freedom VIP 2020 Mutual Fund | 0.80 |
| Total annual fees | 3.85% |
Note: During the first seven years, you will be charged a surrender fee of 2% to 7% of the account value each year that you
make withdrawals beyond the 15% allowed. The fee declines as the years progress. Some fees are based on held assets, others
on the base value of the annuity's guaranteed return.
This article appeared in Consumer Reports Money Adviser.
Posted: November 2009—Consumer Reports Money Adviser issue: December 2009
