A variable annuity is a personal retirement account that brings together the best features of managed investments and insurance. Money accumulates tax-deferred in professionally managed funds until withdrawn. A variable annuity allows the investment of assets in various portfolios called sub-accounts that function similar to mutual funds. The return on those assets will fluctuate in value over time, reflecting the performance of the underlying investment portfolios selected. variable annuities let you receive periodic payments for the rest of your life (or the life of your spouse or any other person you designate). This feature offers protection against the possibility that, after you retire, you will outlive your assets. Second, variable annuities have a death benefit. If you die before the insurer has started making payments to you, your beneficiary is guaranteed to receive a specified amount – typically at least the amount of your purchase payments.

Fixed Annuity                 Variable Annuity
Immediate Annuity      Deferred Annuity
Index Annuity