The National Underwrite has published an article about the cost of fixed annuities, which begins as follows:
In this article, we will focus on one of the most controversial — and often misunderstood — aspects of annuities: their costs. The controversy and misunderstanding are chiefly due to two conditions:
The cost factors can be very complicated and, sometimes bewilderingly so.
The cost factors are often poorly communicated — both from the advisor to the customer, and to that advisor from the insurance company issuing the annuity contract.