Question

5. What covers the cost of a variable annuity's death benefit?

O a. the contract administrative service charge
Ob. the contingent deferred sales charge
Oc. the contract maintenance charge
Od. the mortality and expense charge

Answer 1

The cost of a variable annuity's death benefit is covered by the mortality and expense charge.

Step-by-step explanation:

The cost of a variable annuity's death benefit is covered by the mortality and expense charge. This charge is part of the annuity's overall fees and expenses. The mortality and expense charge helps to cover the cost of providing the death benefit feature, which ensures that a beneficiary will receive a certain amount upon the death of the annuity owner.

Learn more about variable annuity's death benefit