Fees and charges vary with different types of variable annuity contracts

Standard Variable Annuities

Most variable annuity contracts are offered with no initial sales charge, but cancellation of the contract within the first several years following purchase may trigger a withdrawal charge, known as a surrender charge. Usually this charge decreases and disappears over a period of time. For example, a surrender charge may be 7% if surrendered in the first year, 6% in the second year and so on until after seven years there is no surrender charge. Some annuity contracts impose surrender charges only during the initial surrender charge period that begins after the contract is purchased, while others begin a new surrender charge period that applies to each subsequent premium or investment made.

Surrender charges underscore the necessity of considering annuities as long term investments.

A number of insurers have begun to offer other types of charge structures to meet differing investor needs.

L share Variable Annuities

L share variable annuities have shorter surrender charge periods than standard variable annuity contracts, typically 3 to 4 years. L share contracts generally carry higher internal expenses than standard variable annuity contracts, which will reduce your return.

C share Variable Annuities

C share annuities have no surrender charges although tax penalties may apply to withdrawals before age 59 ½. C share contracts generally carry higher internal expenses than standard variable annuity contracts and L shares, which will reduce your return.

Bonus Credit Feature

Some insurance companies offer structures which credit additional dollars to your contract based on a percentage of money invested. Credits can range from 2 to 6% of the initial investment.

Making an Appropriate Choice

Your Janney Financial Consultant can further explain the various contract structures to assist you in making an appropriate choice to match your investment time horizon and investment objectives.

Not all insurance company policies are the same, therefore, it is essential that you carefully read the variable annuity prospectus which outlines specific information concerning fees and expenses before investing.

Additional information is available on the Securities and Exchange Commission website http://www.sec.gov/investor/pubs/varannty.htm

and the NASD website
http://www.nasd.com/stellent/idcplg?IdcService=SS_GET_PAGE&ssDocName=NASDW_005976&ssSourceNodeId=1108