The only people who benefit from these things are the people who sell them. Retirement is a long-term event creating a new level of fear that makes many elderly feel vulnerable. They want a guaranteed fixed income at any cost. Excessive sales commissions. Annuities are a favorite among retirees largely because of the aggressive sales job by insurance agents and some financial planners.
Big commissions are an incentive to sell at any cost.
High-pressure sales tactics play on the irrational fears of retirees. Most can do better picking funds themselves, and buying insurance separately. High penalties if surrendering. In addition to commissions, you're locked in to surrender fee penalties up to 9 percent. The fees are reduced the longer you hold, but older retirees often need the money earlier and are stuck.