This is really a two-part question. The first of which is,
“Do I have to pay the financial advisor?”
Actually no, the financial advisor is compensated by the insurance company.
The second part of that question is,
“What fees are associated with the purchase of an annuity?”
The answer to that is not as simple. Many annuity products do have certain fees and/or associated costs; however, these can often be lessened or even eliminated with the help of your advisor.
Typical fees for fixed annuities range from “zero” to about 1.0% depending on what type of living benefit riders are chosen. For variable annuities, the fees are much higher with typical ranges of about 2.0 to 4.0%
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