An
annuity that allows the
annuitant to make
contributions to both a
fixed annuity and a
variable annuity at once. For example, if an annuitant contributes $1000 per month to the hybrid annuity, $800 may be allocated to the fixed annuity and $200 to the variable annuity. This provides the holder of the hybrid annuity the stability of a fixed annuity with the potential for a higher
return that a variable annuity brings. A hybrid annuity is most useful for
retirees who expect to live for a long time and wish to participate in the
stock market.