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.
Insurance program that allows you to direct your investment in a choice of mutual funds. Meanwhile, you get tax deferment of your earnings and a death benefit guarantee, and you are able to obtain periodic checks for life.
Annuity contracts in which the issuer pays a periodic amount linked to the investment performance of an underlying portfolio.
Variable Annuities are insurance contracts between an insurance company and the contract owner. Payments into the contract are invested in a variety of investment fund options. The value of these investments will fluctuate. Upon Annuitization or withdrawal, earnings in an annuity grow tax-deferred. Earnings are taxable to the owner. Withdrawals prior to age 59 1/2 are subject to income tax penalties. Early withdrawals may also be subject to surrender charges imposed by the insurance company. See also Fixed Annuities.
Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio.