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An annuity is a financial contract between you and your life insurance company. You put money into an annuity and, in exchange, the company agrees to pay you an income in the future. During the “accumulation period” (usually your working years), you put money into the annuity in a series of payments or a lump sum. That money grows tax-deferred. Then, during the “payout period” (usually when you retire), you receive the money you’ve put in, along with the earnings. Part or all of that money will be taxable, and if you are under 59 ½, may be subject to an additional 10% IRS penalty. Annuity contracts may contain charges and investment penalties that could impact your principal.
A variable annuity is a deferred annuity that allows you to participate in the investment of your annuity funds by selecting the series of accounts that your purchase payment will be invested in. You assume the risk for your money, not the insurance company. That risk includes fluctuating values and possible loss of principal, but also has the potential for greater growth than a fixed annuity.
Account Features
- Variable Annuities are sold by prospectus
- The growth of your money depends on the performance of your portfolio
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- Variable annuities allow for flexible premiums and single premiums
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Additional Specifications & Fees
- Withdrawals adversely affect current and future policy values. Surrender periods and charges apply.
Carefully consider the investment objectives, risks, charges, and expenses of a sub account before investing. This and other information is contained in the product and sub account prospectus available from your registered representative. Read the prospectus carefully before investing. |
