These charges cover the cost of maintaining the policy, including accounting and recordkeeping.

The CDSC pays for sales expenses such as commissions, promotions and sales materials. The CDSC is deducted from your cash value if you surrender (terminate) your contract before the end of your surrender charge period. Be sure to check the length of your surrender charge period when evaluating a contract to buy.

These charges compensate the insurance carrier for guaranteeing that annuity purchase rates and charges won't change, regardless of mortality rates or actual expenses.

This tax reimburses the insurance carrier for any premium taxes levied by a state or other government entity.

These fees compensate the underlying fund and its contract owners for the negative impact on fund performance that can result from frequent, short-term trading strategies.

These expenses are deducted from underlying fund assets and pay for fund management distribution fees (such as 12b-1 fees) fees and other expenses.