Why Are Annuities So Expensive? 
Nearly all savings and investment product lines have expenses attached to them , annuities are no exception . But there are many types of annuities and their policy expense loads vary dramatically . Tax deferred annuities have differing crediting methods like interest rate crediting , indexed crediting or separate sub account crediting/debiting . Each of these has their own expense loads . But keep in mind that annuity expenses are often times tied to benefits not found in traditional savings and investment vehicles . So , is the price tag worth the benefit ? That is a product suitability issue . 