Page 8 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY

Don’t Make Me Say I Told You So 164

A variable annuity combines:

Protection
Growth through
potential Variable
via investment Annuity living or
subaccounts death bene ts
in the annuity

There are two phases to a variable annuity

contract:

1. Accumulation Phase – This is the period when you invest

money into the contract, and let the value increase over time. The
assets are invested in portfolios that you choose and have the

potential to grow, tax-deferred.

2. Income Phase – This is when you receive retirement income.

Annuity income is defined as a series of periodic payments, a part
of which may be the return of your premium or principal. The

issuing insurance company guarantees this for a specified period
of time, or for the life of the annuitant.

Chapter 4: Annuities

Don't Make Me Say I Told You So_6.27x9.46.indd 164 09-07-2016 00:22:11