What are the different annuity share classes?
B Share annuities do not have an initial sales charge, but do have a contingent deferred sales charge. Also known as a Surrender Charge, you will pay this sales charge when you make a partial or full surrender from the annuity. The product prospectus will specify the terms of the surrender schedule. A typical surrender schedule averages 6-8 years, with the surrender charge ranging from 5%-7% and decreasing by 1% each year the contract is in force, until it reaches zero. Most B share annuities impose the surrender charge during the initial period that begins after the contract is purchased. However, some will begin a new surrender charge period with each subsequent payment. Once the surrender charge period ends, the contract is out of surrender and no further surrender charges will apply to withdrawals. However, withdrawals are still subject to income tax and, if taken prior to age 59½, a 10% IRS penalty tax. C Share annuities provide more liquidity for investors by allowing cash surren
B Share annuities do not have an initial sales charge, but do have a contingent deferred sales charge. Also known as a Surrender Charge, you will pay this sales charge when you make a partial or full surrender from the annuity. The product prospectus will specify the terms of the surrender schedule. A typical surrender schedule averages 6-8 years, with the surrender charge ranging from 5%-7% and decreasing by 1% each year the contract is in force, until it reaches zero. Most B share annuities impose the surrender charge during the initial period that begins after the contract is purchased. However, some will begin a new surrender charge period with each subsequent payment. Once the surrender charge period ends, the contract is out of surrender and no further surrender charges will apply to withdrawals. However, withdrawals are still subject to income tax and, if taken prior to age 59½, a 10% IRS penalty tax. C Share annuities provide more liquidity for investors by allowing cash surren
