Why Are Annuities So Expensive? 
The insurance company issuing the annuity is accepting a very great risk , a lifetime of monthly payments . Annuitants tend to live longer than non-annuitants and that is a factor . The other expenses of the insurance company have more to do with the accumulation phase and represent the costs of dealing in different investment programs . There are some annuities with little to no load in which case you can get the benefits of an annuity without any fees or charges . 