Why Are Annuities So Expensive? 
That is a great question ! As an answer for you , I 'd point out that there are many different annuity products out there , and like mutual funds , some have higher expenses than others . It is wise to shop around , and learn what fees and expenses will be attached to the annuity , and its riders . That said , insurance companies determine cost based on risk , and when you add a guaranteed income payout rider to your annuity , the risk of you receiving a payout that exceeds what you paid in id pretty good , so the companies will charge you more . Just like life insurance for a smoker is higher , as their health risks are higher than a non-smokers are . I always advise that you speak with an advisor that you can trust before making any investments , as they all have pros and cons to consider . If you contact me , I 'll walk you through this in a little more detail . Thanks for asking ! 