What are the important features of a variable annuity?
• Separate accounts: The variable portfolios in your annuity are part of a separate account, established and maintained apart from the company’s general investment portfolio. The performance of your investment does not depend on the insurance company’s portfolio. Only the performance of the variable portfolios you have chosen will affect your results. • Diversification: Even if you invest in a single portfolio, your risk is spread among many securities, reducing the possibility of losing a substantial amount due to any one security. • Transfer privileges: Most variable annuities permit you to reallocate your money among the portfolios, usually without charge as long as you don’t move the money too often.
