ANNUITIES
Fixed Annuities
Equity Indexed Annuities
Variable Annuities
LIFE INSURANCE
Term Life
Universal Life
Indexed Universal Life
Whole Life
Life Settlement
INFINITE BANKING
RESOURCES
Calculators
CONTACT
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Variable Annuities
A variable annuity is a contract between you and an insurance company, under which you make a lump-sum payment or
series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at
some future date. You can choose to invest your purchase payments in a range of investment options, which are
typically mutual funds. The value of your account in a variable annuity will vary, depending on the performance
of the investment options you have chosen.
Variable annuities also offer many of the features of other types of annuities. These include:
- Tax-deferred growth of earnings;
- A death benefit that will pay to your beneficiary the greater of your account value or a guaranteed minimum amount,
such as your total purchase payments; and
- The option of receiving a stream of periodic payments for either a definite period, such as 20 years or an indefinite
period, such as your lifetime or the life of your spouse.
For more information about variable annuities, including the types of fees and expenses they charge,
read the SEC publication, Variable Annuities: What You Should Know.
This information was sourced from the SEC.
http://www.sec.gov/answers/varann.htm
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