Transforming capital gains to ordinary income is harder to justify .
Fees are much higher than for mutual funds .
The death benefit isn't worth the money . A large chunk of the fees pays for the death benefit, which typically pays off only if you die when your account has fallen below the minimum guarantee. But chances are slim that you'll lose money over the long haul. You don't need a variable annuity to guarantee income for life. Once the payments begin, you can't change your mind.