Variable Annuities

Variable Annuities — An opportunity for long-term growth in an insurance product

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Variable Annuities — An opportunity for long-term growth in an insurance product

If you want more of a say in selecting your retirement investments, but also like the idea of having some insurance protection as part of the mix, a variable annuity may be worth considering. Variable annuities are long-term investments that can be purchased through a financial professional and are designed to create income for retirement.

Variable benefits with variable risks

Like all annuities, a variable annuity is a contract with an insurance company that gives you the option to turn the money you invest into a stream of income at some point. Depending on how the income is taken there may be a federal tax penalty if income is taken prior to age 59½. Unlike a fixed annuity the value of a variable annuity and future income payments can fluctuate over time - fluctuation is dependent on your investment performance.

 

Because of their growth potential, variable annuities can help outpace inflation.

 

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Funding your retirement vision.

A variable annuity allows you to:

  • Invest in the market — You can choose among professionally managed portfolios that invest in stocks, bonds and mutual funds, dividing it to create a diversified mix that suits your long-term financial goals and your risk tolerance.
  • Invest all at once or over time — Most variable annuities allow for both lump sum purchases or making contributions over time.
  • Defer taxes — Your investments have the potential to grow tax-deferred. Withdrawals of interest from certain accounts may be taxable at your ordinary income tax rate.1
  • Provide protection — A death benefit is included to help protect a portion of your savings for your heirs.

Variable benefits, variable risks, lifetime withdrawals

Just as an umbrella can give you a little extra protection over your raincoat and hat, adding guaranteed lifetime withdrawal benefits or riders to a variable annuity puts a little something extra into your retirement investment—guaranteed lifetime income. The insurance company guarantees a regular payment for your lifetime. Payments can be received monthly, quarterly or annually. Using this benefit income will continue even if your account value drops to zero. This will ensure that you won’t outlive your assets. Keep in mind, these extra benefits can sometimes come with an extra cost. Be sure to read the fine print carefully before investing.

Ready to learn more?

If you’d like to learn more about how a variable annuity can provide investment flexibility with income options, call us today.

You should consider the investment objectives, risks and charges, and expenses of the variable annuity and its underlying investment options carefully before  . The prospectus for the variable annuity and underlying investment options contain this and other information. You may obtain a free prospectus by calling your financial professional. Please read the prospectus carefully before investing.

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