A life insurance company investment product that combines a savings plan with a small life insurance component to provide certain tax benefits. The savings portion can be invested in a choice of pooled vehicles, including stock funds.
Variable annuities are often used both as savings and retirement vehicles. Their earnings grow on a tax-deferred basis, they offer a guaranteed death benefit, they benefit from professional management, and they have the added potential for income during retirement years.
a type of annuity in which you spread your premium among investment portfolios consisting of any combination of stocks, fixed income instruments, or money market accounts. The annuity value will the reflect the performance of the investments in these portfolios and is subject to market risk including the loss of the principal amount. The ultimate value of the annuity determines what the payout amount will be.