Fixed annuities embed their costs in the credited interest rate rather than separate fees, making them relatively transparent. Variable annuities typically layer multiple fees: mortality and expense charges (often 1–1.5% annually), investment management fees on subaccounts (0.5–2%), and optional rider costs for income guarantees or death benefits (0.5–1.5%), bringing total annual expenses to 2–4% or more. Fixed-indexed annuities generally fall between these extremes. Always request a full fee disclosure before purchasing.