Introduction to Variable Annuities

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Learn what it means for an annuity to be variable. Also learn some strategic considerations for investing in variable annuities.

What you will learn

  • Review of Annuity Basics
  • What Makes Variable Annuities Variable?
  • Considerations for Variable Annuities

What do you know?

Introduction to Variable Annuities

Although annuities have been around a long time, the traditional fixed annuity was often plagued by inflation and offered low returns. To attract more investors to annuities, insurance companies introduced variable annuities as a more competitive investment option.

Although the growth and return on variable annuities is subject to market fluctuation, these annuities still offer investors a guarantee of an income that they cannot outlive with the life option. This makes the variable annuity an attractive choice for retirement income.