Annuity Fees and Charges

When you are considering the purchase of an annuity, ask about the fees and charges you will incur. Insurance companies deduct some standard fees from your payments and your cash value. Keep in mind that these charges vary by product. Please ask your investment professional for specific information about these charges or look on this website for brochures for each specific product.

Common fees and charges for annuities

• Administration/contract maintenance charge − These cover the cost of maintaining the policy, including accounting and record keeping.
  
  
• Contingent deferred sales charge (CDSC) − The CDSC pays for sales expenses like commissions, promotions and sales materials. It is deducted from your cash value if you surrender (terminate) your contract during your surrender charge period. Be sure to check the length of your surrender charge period when evaluating a contract to buy, since it can vary.
  
  
• Mortality and expense risk charge (M and E) − These charges compensate Nationwide for guaranteeing that annuity purchase rates and charges will not change, regardless of death rates or actual expenses.
  
  
• Premium tax − This reimburses Nationwide for any premium taxes levied by a state or other government entity.
  
  
• Short term trading fees − These compensate the underlying mutual fund and its contract owners for the negative impact on fund performance that can result from frequent, short-term trading strategies.
  
  
• Underlying mutual fund expenses − These expenses are deducted from underlying mutual fund assets, and pay for fund management distribution (12b-1) fees, and other expenses.

Annuities are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Life Insurance Company, Columbus, Ohio.