Variable Annuities
Variable annuities pay amounts that vary according to the investment performance of a specified set of investments, typically bond and equity mutual funds. Variable annuities are used for many different objectives. One common objective is deferral of the recognition of taxable gains. Money deposited in a variable annuity grows on a tax-deferred basis, so that taxes on investment gains are not due until a withdrawal is made. Variable annuities offer a variety of funds (also known as subaccounts) from various money managers. This gives investors the ability to move between subaccounts without incurring additional fees or sales charges.
Variable annuities are insurance products with investment options that are subject to market risk. These products are long term investments designed for retirement purposes. The product offers tax deferral potential growth; however, withdrawals prior to age 59 ½ may by subject to taxes and penalties. While variable annuities offer a death benefit component and other guarantees, these guarantees are subject to the claims-paying ability of the issuer. Other risks are associated with variable annuities. For example, the value of the variable accounts will fluctuate and, when redeemed, your contract may be worth more or less than the original investment. Please note that death benefits may be subject to penalties and charges. Please consider investment objectives, risks, charges and expenses before investing. For this and other information about any variable annuity and its underlying investments, please call the variable annuity provider to request a prospectus. Please read it carefully before you invest.