How does a variable annuity differ from an enhanced plus variable annuity? As an example, an enhanced cannot be taken out for 10 years?
Different vendors may call their variable annuities “enhanced,” “plus,” “select” or any combination of adjectives to try to differentiate them from other providers or suggest that they are better than other annuities. Any enhanced or plus variable annuity may include any number of different features, such as flexible premiums or guaranteed minimum withdrawal benefits, that will likely cost you more money in fees. As far as the surrender period, most variable annuities have surrender periods, regardless of what they are called. So you will need to review the information provided for the specific variable annuity you are considering.
To learn more about variable annuities, watch “The Truth about Variable Annuities” at CTAinvest.org.
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