One of the most common concerns about annuities is fees. The good news: fixed and fixed indexed annuities typically have no explicit annual management fees. The insurer earns its margin through the spread between what it earns on invested assets and what it credits to your account.
Surrender Charges
The most significant cost to understand is the surrender charge — a penalty for withdrawing more than allowed during the surrender period. Surrender periods typically run 5 to 10 years, with charges starting around 7–10% and declining each year.
Free Withdrawal Provisions
Most contracts allow you to withdraw up to 10% of your account value per year without surrender charges. This provides meaningful liquidity even during the surrender period.
Income Rider Fees
Optional income riders (Guaranteed Lifetime Withdrawal Benefits) typically carry an annual fee of 0.75%–1.25% of the income base or account value. This is the main fee you’ll pay in a FIA, and only if you elect the rider.
No Hidden Fees in Fixed Annuities
A straightforward MYGA has no management fees, no mortality charges, and no administrative fees in most cases. You deposit money, it earns a guaranteed rate, and at the end of the term you receive your full principal and interest.
Call us at 1-888-972-0024 for a plain-language breakdown of any contract we recommend before you sign anything.