The Difference between VA and MF

Variable Annuities

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Annuities

Variable Annuities vs. Mutual Funds

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How do variable annuities differ from mutual funds?

Attributes:	Annuities	Mutual Funds
Mutual Funds/Subaccounts	Multiple Families	Single Family
Tax-Deferred Growth	Yes	No
Guaranteed Death Benefit	Yes	No
Step Up Options that lock in a Higher Guaranteed Death Benefit	Yes	No
Optional Guarantees	Yes - Life Riders	No
Guarantee Return of Principal Option	Yes	No
Guaranteed Income for Life Option	Yes	No
Up-Front Sales Charge	No - 100% Invested	Yes - A Shares
Back-End Sales Charge	Yes - Surrender Period	Yes - B Shares
Back-End Sales Charge Exception	Yes - Usually greater of 10% of Principal or 100% of Gain	No
Management Fees	Yes - Lower	Yes - Higher
Switching Cost between Families	No - Within Annuity	Yes
Tax Control	Yes	No
Taxation of Distributions	Income	Capital Gains, Income, & Dividends
Liquid	Yes	Yes
Professional Management	Yes	Yes
Investment Diversification	Yes	Yes
Asset Allocation	Yes	Yes
Rebalancing	Yes	Yes
Total Cost	Higher than Mutual Fund	Lower than Variable Annuity
Best Value	Subjective	Subjective

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For demonstrative purposes, MetLife's Preference Plus Select variable annuity options were used. Annuity options very between other MetLife annuity products and annuities offered by other carriers. Availability varies state to state. Contact your local Certified Financial Planner™ for additional information.

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