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Six Low-Cost Variable Annuities


Annuity FYI just added a new page with information about some of the best low-cost variable annuities available right now.  I thought it was important to summarize this information on the blog as well because we are constantly asked about low-cost variable annuities.  Do they exist?  Are they any good?  Yes, there are definitely a lot of good low-cost variable annuities to be found.  It doesn’t mean they are the best product for your needs just because they are low-cost, but there is a chance that they might be.  Following are the six low-cost variable annuities available right that Annuity FYI believes hold good value.

  • Prudential’s Premier Advisor has living income and death benefit riders that are very competitive despite its low cost.  The fact that it has no surrender charges makes this variable annuity a good one for people worried that they might need immediate access to their money.  The sub-account fees range from .62%-1.66%.  The M&E fee is .55%, while the contract fee is $50 or 2% of the account value, whichever is lower.
  • Pacific Life’s Pacific Odyssey has low ME&A fees of .40%.  Death benefit and living income riders are available at a very low cost and there are not surrender charges with this product either.  The sub-account fees are between .29%-1.97%.
  • Vanguard’s Variable Annuity has some of the lowest ME&A fees of .295% because there is no return of premium death benefit rider.  If you aren’t interested in such a rider, this product is a great way to save on fees.  The $25 annual service fee is waived if your account balance is more than $25,000.  There are no surrender charges with this product either.  Total sub-account fees are very low, with a range of .06%-.44%.
  • Ameritas’ Variable Annuity has great living income benefit riders and no surrender charges, but does not offer enhanced death benefit riders.  M&E fees are .60% and sub-account fees range from .06%-4.89%.  The $40 annual service fee is waived if you have at least $50,000 in your annuity.
  • Lincoln Financial Group’s American Legacy III C-Share is another variable annuity with no surrender charges.  Annuity FYI likes this particular product because the fees are low, especially for the competitive living withdrawal benefit riders offered.  The age bands on this rider are very low for investors.  M&E fees are 1.70% and sub-account fees range from .53%-1.12%.  The $35 annual service fee is waived by Lincoln for account values over $100,000.
  • Sun America’s Polaris Advisor III has low fees and low costs for their competitive death benefit and lifetime income riders.  There are no surrender charges for this annuity either.  Sub-account fees range from .72%-1.57%, while M&E fees are 1.65%.  If your contract value is $75,000 or more, the $50 annual service fee is waived.

While these six low-cost variable annuities certainly aren’t the only options out there, Annuity FYI believes that they are good products for the right investors.  Our experts answer a lot of questions about variable annuities and would be glad to offer help to you as well.  Call or email a representative for free advice on annuity products.

Written by Rachel Summit

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