What is a rider in a variable annuity?

• A. An optional feature with its own fees and guarantees beyond the base contract.
• B. A mandatory feature that cannot be removed.
• C. A feature that eliminates all fees.
• D. A feature that sets a fixed rate of return.

Answer: (A)

Riders are optional add-ons to a variable annuity that provide extra benefits beyond the base contract, and they come with their own fees. These features can offer guarantees or enhanced benefits, such as a guaranteed minimum income, enhanced death benefits, or other protective features, but they’re not part of the core contract unless you choose to add them. They add cost and may have specific eligibility or withdrawal rules, which is why they’re described as optional with separate fees and guarantees. This best fits the idea of a rider being an optional feature with its own fees and guarantees beyond the base contract.