The prospectus for Vanguard Variable Annuity has a "Mortality and Expense Risk Charge" of 0.02%.  I didn't see where that was really defined anywhere in the prospectus.  In the competitions prospectus (I won't use the "F" word), it says "We bear the the mortality risk under a Contract, which is that Annuitants who receive annuity income payments guaranteed to last for their lifetimes will live longer than we project".

 So here's the question...If I sign-up for the "Accumulated Value Death Benefit Option", which is the one without any of the riders, and the one that just gives you back the Accumulated Value, aren't I paying for something I'm not getting?  In other words, it would be impossible for me to live longer than projected (and cost Vanguard more) if the payout has nothing to do with my living or not.  But yet even with no riders, the 0.02% annual is still in there.

 
--Dale--