Variable Annuity Pricing and Standard Commissions

Sales charges vary based on the pricing option chosen by the investor as well as the type of variable annuity purchased.

A-share policies
Variable annuity policies that offer an A-share pricing option have standard commissions disclosed in the prospectus. A sales charge is deducted from the initial investment, a portion of which is paid by the insurance company to the distributor. A reduced sales charge or "breakpoint" may be available based upon the amount invested, as well as upon your holdings of certain mutual funds. A-share policies typically have a small or no contingent deferred sales charge (CDSC).

B-share policies
Variable annuity policies that offer B-share pricing typically are made available to distributors with a variety of commission options. The maximum commission an insurance company is allowed to pay is disclosed in the prospectus. There are usually up to three commission options from which a distributor can choose. B-share policies typically include a CDSC that usually declines over a period of years. Typically, CDSC periods are applicable for up to seven years after the purchase of a variable annuity.

C-share policies
Variable annuity policies that offer a C-share pricing option have a small or no upfront sales charge and no CDSC. They are generally made available to distributors only with an annual asset-based commission in exchange for annual insurance charges that are higher than with a B-share policy. Typically, there is only a small or no CDSC associated with these policies

For more information, please contact your local financial advisor.