What are the different types of annuities?

There are two other types of annuities to choose from: variable annuities and fixed index annuities. If you buy an annuity, it’s usually a multi-year investment for a considerable amount of your money. If you cancel before the end of the annuity term, you could owe a substantial penalty known as a surrender charge.

How do you compare annuity types?

When comparing annuity types, consider not only the different features but also how the annuity will benefit your individual situation. Ask yourself what you most want to gain from buying an annuity. Christopher Magnussen |2:15How do I know which annuity is best for me? Our financial experts can help you choose the best annuity to fit your goals.

How much do annuities cost?

Annuity fees can vary widely. Variable annuities, for example, may charge 1.5 to 3 percent a year in administrative fees, mortality expenses and investment fund expenses. Meanwhile, a type of fixed annuity called a multi-year guaranteed annuity shares similarities with a bank CD, and typically doesn’t have any annual fees.