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. 


 

KEY QUESTIONS

  1. What are the total expenses

  2. What are the surrender charges for early withdrawl

  3. Do I have to annuitize to exercise the guarantee

  4. If I take out more then the stated guaranteed income benefit how does it affect my living benefit total

  5. Is there a death benefit and how does that work when withdrawing money 


THE PRO’s

  1. Tax deferral

  2. Guaranteed income

  3. Death benefit

THE CON’s

  1. Gains taxed at ordinary income

  2. Expenses are very high

  3. Penalties for early withdrawal 


VARIABLE ANNUITY EXPENSES

Industry Average Annual Expenses 2.395%

In addition to the annual expenses listed above, most variable annuities have early withdrawal penalties 


RETAIL INVESTOR ASSETS BY PRODUCT 

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