Variable annuities


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Related to Variable annuities: Fixed annuities

Variable annuities

Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio.

Variable Annuity

An annuity that provides the annuitant a small guaranteed return for the life of the annuity along with another return that depends on the performance of a portfolio. Like any annuity, the annuitant buys into a policy, either with a lump sum or premiums over a period of time. When the annuitant reaches a certain age or retirement (whichever is greater), he/she begins to receive payments. Generally speaking, the insurance company issuing a variable annuity invests the premiums in investment vehicles such as stocks or mutual funds. This exposes the annuitant to the risk that he/she will be stuck with a smaller return, but it also carries the possibility of a much larger return. See also: Fixed annuity.
References in periodicals archive ?
retail business--including a sizable variable annuities book--into the independent insurer, Brighthouse Financial.
Even if the readers have heard of variable annuities, Koijen and Yogo may be giving them the vocabulary and definitions they will use to think about the products in the future.
Buyers of variable annuities with a guaranteed living benefit are more concentrated towards pre-retiree's.
FINRA said the companies lacked an adequate system to supervise variable annuities with multiple share classes and failed to provide reasonable guidance about the narrow class of customers for whom the cost and features of L-share variable annuities were suitable.
Despite the recent negativity, we expect variable annuities to continue to flourish as a popular vehicle for U.S.
Many CPA financial planners are skeptical about variable annuities. This article will discuss the positives and negatives of variable annuities in general and enhanced benefit riders specifically, and it will illustrate how they can be used in different financial planning scenarios.
Consumers can also find the 2014 Weiss Ratings' lists of Best Variable Annuities with Guaranteed Withdrawal Benefits and Worst Variable Annuities at WeissRatings.com (http://weissratings.com/ratings/best-and-worst-variable-annuities.aspx).
Consumers can also find the 2014 Weiss Ratings lists of Best Variable Annuities with Guaranteed Withdrawal Benefits and Worst Variable Annuities at WeissRatings.com.
Variable units (investments) would "vary" based on market performance, and, thus, the annuities were variable annuities.
One key additional benefit in variable annuities is the ability to exchange sub-accounts with no current income tax consequences and at low or no cost.
In last year, Sun Life had pronounced that it would discontinue selling variable annuities and individual life insurance in the United States.
In the past fifteen years, variable annuities have stepped up the guarantees that they provide, delivering a far wider range of income and death benefit features.

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