Like other types of annuities, a variable annuity is a promise or contract between you and an insurance company: The insurance company promises to provide income to you either immediately or in the future, in return for you making a single or series of payments to the insurance company. The income or payout you get from your annuity contract can be available in a lump-sum payment or as a series of payments over time.
You decide how to allocate part of your premium payments to different professionally managed investment accounts. The variety of available choices allows you to develop an investment strategy tailored to your unique needs. Investment options are subject to market fluctuation, investment risk, and possible loss of principal. Your payout depends on the terms of the variable annuity, the amount you put into the annuity, the performance of the investments you select, and expenses.
You may want to buy a variable annuity if you want to:
· Save money for retirement
· Potentially provide a death benefit to your loved ones
· Benefit from tax-deferred growth