Variable Annuity Information
On March 05, 2010 in Finance
There are different types of annuity products in the market. Each has its own set of costs and features. Immediate and deferred annuities are the two fundamental forms of annuities. In case of an immediate annuity, the payouts are provided at once. The payouts depend on the contract terms, and can continue for life or a certain period of life. There are two different types of deferred annuities.In case of a fixed annuity, a guaranteed interest rate is provided over a specific period that varies from 1 to 5 years. What is a variable annuity? Where variable annuities are concerned, the interest rate depends on the value of the underlying investment and can change according to it. For investment purposes, variable annuity investors can choose from money market funds, bond and stock for diversifying portfolios or managing risk. Variable annuity tax must also be considered when undertaking this form of investment. Given the rapidly developing annuity market and volatile financial markets, it is no surprise that variable annuities have really taken of.