Illinois
Your Illinois pro will walk you through variable annuity options. Free call.
Understand fees, funds, and riders before you buy. No pressure. Just straight answers.
1,247 investors using variable annuities for tax-deferred growth this year
Your account can grow as much as your investments perform - no caps on returns like indexed annuities
Add living benefit riders for guaranteed income or death benefit riders for legacy protection
Gains grow tax-deferred - no annual 1099s. Pay taxes only on withdrawals, potentially at lower rates
Understanding when variable annuities are the right choice
Similar investment options (stocks, bonds, funds) but with tax-deferred growth. No annual capital gains taxes. Downside: fees are higher, early withdrawal penalties before 59½.
No contribution limits (IRAs max at $7-8K/year). Good for high earners who max other retirement accounts. Downside: no upfront tax deduction, higher fees.
Unlimited upside potential (no caps or participation limits). Can allocate to aggressive growth funds. Downside: can lose money in down markets.
Guaranteed lifetime withdrawal benefit (GLWB) riders guarantee income even if account goes to zero. Costs 0.5-1.5%/year but provides downside protection.
Understanding costs is critical - fees impact net returns
| Fee Type | Typical Range | What It Covers |
|---|---|---|
| Mortality & Expense (M&E) | 1.0% - 1.5% | Insurance guarantees, admin |
| Investment Management | 0.5% - 1.5% | Fund management fees |
| Living Benefit Rider | 0.5% - 1.5% | Income guarantee (optional) |
| Death Benefit Rider | 0.2% - 0.5% | Enhanced death benefit (optional) |
| Total Annual Fees | 2.0% - 4.0% | All combined (with riders) |
Compare variable annuities with optional income guarantees