Variable Annuities Definition

Variable annuities are investments issued by insurance companies and sold through brokers.

Variable annuities definition. At retirement the balance is annuitized or begins to. The principal and the return. Variable Annuity Death Benefits.

The return is the income the policyholder makes through their investment selection. Investors in variable annuities can vary their exposure. Still penalties can be incurred for early withdrawals.

This exposes the annuitant to the risk that heshe will be stuck with a smaller return but it also carries the possibility of a much larger return. Variable annuities offer income options that go up and down with market performance. American Heritage Dictionary of the English Language Fifth Edition.

The principal is the amount the policyholder pays into the annuity. It is structured to be a retirement annuity into which is integrated several additional features. What is a Variable Annuity.

Means all of the variable annuity contracts and policies together with all related binders and slips including applications therefor and all supplements endorsements riders and agreements in connection therewith which were effected bound issued or assumed by the Company at any time at or prior to the Effective Time. It is designed to provide retirement income. What is a Variable Annuity.

With variable annuities policyholders can choose from a number of investment opportunities. A variable annuity is a contract between you and an insurance company. The contract provides the holder with future payments based on the performance of the contracts underlying securities.