Page 35 - Life Assurance

ic characteristics of variable annuity:

Premiums are invested in a portfolio of
common stocks or other investments that
presumably will increase in value during a period
of inflation. The premiums are used to purchase
accumulation units during the period prior to
retirement, and the value of each accumulation
unit varies depending on common stock prices.

Fees and Expenses:

Variable annuity owners pay a number of
fees and expenses. Some fees consist of
investments management and administration
fees; other fees are insurance charges that pay
for the guarantees and other service provided. In
additional most variable annuities have
surrender charges.

Specifically, variable annuities typically
contain the following fees and expenses:

* Investment management charge. This
charge is a payment to the investment manager
and asset-management company for the
brokerage services and investment advice
provided in the management of the investment
portfolio.

* Administrative charge. This charge covers
the paperwork, record keeping, and periodic
reports to the annuity owner.

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