variable annuity

A variable annuity is a type of insurance product designed to provide a stream of income, often for life, during retirement. Unlike fixed annuities, which offer predictable payments based on a set interest rate, variable annuities tie potential growth to financial markets. This means payouts can fluctuate, increasing with market gains or decreasing with losses.

Key features include a guaranteed death benefit and optional living benefits. While variable annuities offer the potential for higher returns, they also carry the risk of market losses and typically come with higher fees than fixed annuities. They are complex products that require careful consideration of one's risk tolerance and financial goals.12