A variable annuity is a contract between you and an insurance company in which you make one or more lump-sum payments. In exchange, the insurer promises to make monthly payments to you, either immediately or at a later date. You have the option of investing your purchase payments in a variety of investment alternatives, most of which are mutual funds. The value of your variable annuity account will fluctuate based on the performance of the investment options you select.
Variable annuities frequently include optional living benefit elements that shield payouts, withdrawals, or account values from the effects of investment losses and/or unexpected longevity.

A variable annuity is a long-term financial product offered by insurance companies that allows individuals to invest funds and receive periodic payments in retirement. Unlike fixed annuities, variable annuities provide returns based on the performance of selected investment options, typically mutual funds. The value of the annuity can fluctuate depending on market conditions. Variable annuities often include features like tax-deferred growth, death benefits, and optional living benefits for added income protection. However, they may also come with high fees, including management, administrative, and insurance charges. Investors choose variable annuities to potentially grow their retirement savings while still securing an income stream, though they must be comfortable with investment risks and long-term commitments.