Variable Annuity

Variable annuity
A contract that gives future payments to the holder, usually at retirement. The amount of the payments is dependant on the perfomance of selected securities.
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Variable annuity explained
By Jakob Jelling
Cashbazar.com
A great retirement option for the long-lived.

A variable annuity offers a range of investment options. The value of your investment as a variable annuity owner will vary depending on the performance of the investment options you choose.

When offering a variable annuity structure for a life insurance contract, the portfolio that serves as the underlying asset for the offering is usually made up of equity and debt securities.

Variable Annuity An annuity whose premiums are invested in a variety of investment vehicles (stocks, bonds, etc.).

Variable Annuity
A life insurance policy where the annuity premium (a set amount of dollars) is immediately turned into units of a portfolio of stocks.

Variable Annuity
An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.
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Variable Annuity Charges
You will pay several charges when you invest in a variable annuity. Be sure you understand all the charges before you invest. These charges will reduce the value of your account and the return on your investment.

A variable annuity is a contract between you and an insurance company, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date.

A variable annuity similar to a tax-deferred mutual fund. Your premiums could be invested in individual stocks and mutual funds to real estate and certificates of deposit.

combination annuity An annuity which combines features of a fixed annuity and a variable annuity. Also known as hybrid annuity. combination bond A bond which is backed both by revenue from the project for which the borrowing...

Variable annuity
A variable annuity is a contract between you and an insurance company or a bank in which you contribute money that grows tax deferred and receive a payout later, generally at retirement.

Annuity units are the shares you own in variable annuity subaccounts, also called annuity funds or separate account funds, during the period you're receiving income from the annuity.

Naic: Variable Annuity Model Regulation National Association of Insurance Commissioners (insurance term)
Unfair Claims Practice (insurance term)
Zone System (insurance term) ...

Variable annuities: A variable annuity allows you to diversify by investing in a professionally managed portfolio of securities with varying rates of return.

Accumulation Unit A share of ownership in a variable annuity contract. This is what an annuity holder buys when building up the annuity's value.

Variable Annuity: An annuity where the value fluctuates based on the market performance of its underlying securities portfolio.

Volatility: The degree of price fluctuation associated with a given investment, interest rate, or market index.

Mutual funds, exchange-traded funds (ETFs), and other equitized investments (such as unit investment trusts or UITs, insurance separate accounts and related variable products such as variable universal life insurance policies and variable annuity ...

Periodic purchase deferred contract
A fixed or variable annuity contract for which fixed-amount premiums are paid either monthly or quarterly, and that does not begin paying out until a time elected by the annuitant.

A smaller version of a retail mutual fund, it is offered as a subaccount in a variable annuity.

Clone Fund A smaller version of a retail mutual fund, it is offered as a subaccount in a variable annuity.

Accumulation period: For a variable annuity, the time from when the first payment into the annuity is made to when the first annuity payment is made.

Telephone switching
Moving one's assets from one mutual fund or variable annuity to another by telephone.

Insurance companies sell annuities and assume the risk that the insured will live for a long time. In contrast, a variable annuity is an annuity for which payments depend on the return earned on investments and are uncertain.

The payments to you can be for a fixed amount (in the case of a fixed annuity) or for an amount that varies according to an underlying investment (in the case of a variable annuity).
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The family of funds at AIM consists primarily of retail mutual funds and variable annuity funds. On March 31, 2008, AIM Investments was renamed Invesco AIM as part of the parent firm Investco's broader branding strategy.

Held in a separate account that is unique from the insurer's general account assets. This is not a derivative because of the unique attributes of the traditional variable annuity contracts issued by the insurance company.

should structure as much of your portfolio in non-taxable growth entities as possible, including: IRA's, IRA rollovers, certain variable annuities, or properly structured offshore accounts. (A good example is the American Skandia variable annuity ...

Variable Annuity (VA)
An annuity funded by a separate account that invests in securities. Funds accumulate at a variable rate.

See also: Variable, Annuity, Investment, Market, Contract