Which aspect of an annuity can affect the overall investment return received by the contract owner?

The fees associated with an annuity can significantly influence the overall investment return received by the contract owner. When an investor purchases an annuity, various fees may be involved, such as administrative fees, mortality and expense charges, and investment management fees. These costs can reduce the net returns on the investment, which means that a higher fee structure can lead to a lower effective return over time. Consequently, when assessing the suitability of an annuity, understanding the fee structure is crucial, as it directly impacts the long-term growth of the investment.

While the other factors mentioned may play a role in the overall suitability or terms of the annuity, they do not have as direct an impact on the investment return as fees do. For instance, the contract owner's age at purchase may determine the length of the contract or the withdrawal penalties but does not directly alter how fees affect the growth of the investment. Similarly, the type of insurance company or the initial amount invested can influence certain aspects of the annuity, but it is the fees that consistently erode the returns realized by the contract owner throughout the lifetime of the annuity.