Variable Annuity Definition

With variable annuities policyholders can choose from a number of investment opportunities.

Variable annuity definition. Contrary to a fixed annuity which offers an interest rate that is guaranteed as well as a minimum annuity payment variable annuities give investors the chance to generate higher return rates by investing in equity as well as bond subaccounts. A variable annuity is an annuity whose value fluctuates with changes in the market. It is structured to be a retirement annuity into which is integrated several additional features.

A variable annuity is an investment product that allows a sum of money to grow on a tax deferred basis. A variable annuity is a contract sold by an insurance company that guarantees future payments to the holder based on the performance of the underlying securities listed in the contract. One investment option is a variable account which typically consists of equity bond or money market mutual funds.

The principal is the amount the policyholder pays into the annuity. Variable annuities are a popular long-term investment plan for retirement. A variable annuity is a contract sold by an insurance company.

What Is a Variable Annuity. What is a Variable Annuity. The freedom to choose where insurance money is going to be invested in makes variable annuity appealing to some investors.

A variable annuity is a contract with an insurance company that includes investments you choose and a fixed insurance component. Variable annuity is considered one of the retirement plans by many because it offers death benefit and income after retirement. The issuer provides the holder with a minimum payment but the rate of return on the underlying assets may chance.

With a variable annuity your account balance and your payments fluctuate based on the performance of markets. Variable annuities have two components. What is a Variable Annuity.