What are the risks of a variable annuity?
A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making a single payment or a series of payments. A variable annuity typically offers a range of investment options. The value of your investment will vary depending on the performance of the investment options you choose. Investment options for a variable annuity typically are mutual funds that invest in stocks, bonds, money market instruments, or some combination of the three. Although variable annuities typically invest in mutual funds, they differ from mutual funds in several important ways: First, variable annuities let you receive periodic payments for the rest of your life (or the life of your spouse or some other person you designate). This feature offers protection against the possibility that you will outlive your assets. Second, variable annuities
