Page 7 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY
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Section 2
What is a Variable annuity?
A variable annuity is a long-term contract between an insurance
company and you that allows you to save money tax-deferred
for retirement. It combines investment growth potential with
equity “subaccounts,” and protection through living benefits that
guarantee a minimum level of income.
Basic features include:
► Tax-deferred growth
► Choice of professionally-managed investments
► Protection benefits: Living benefits and death benefits
► Choice of payout options
► Tax-free transfers between investment subaccounts
► Automatic rebalancing of investments quarterly, semi-
annually, or annually
► No IRA annual limit on the amount you can invest
Many variable annuities offer features called “living benefits,”
which guarantee a certain level of income, and “death benefits,”
which guarantee the amount of money that goes to your
beneficiaries.
Chapter 4: Annuities
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