Variable annuities offer guaranteed income for life, in addition to the potential increase earnings from underlying investments. Despite a certain level of risk, this type of annuity offers the chance to significantly boost income while offering flexible payout options.
Benefits of a Variable Annuity:
- Income growth potential
- Guaranteed income
- Protected lifetime income
- Legacy protection
- Tax advantages
Annuity Payout Options
There are two primary forms that annuity payouts can take. Both have unique benefits, and drawbacks.
- Life Annuity; this format of annuity offers the highest income, but can’t be paid out to a beneficiary in the event of recipient death. There are numerous factors that may influence your maximum and minimum payments including age, sex, current interest rates, and cost of living.
- Term Certain Annuity; this format is payable for a fixed time that is decided by the purchaser of the annuity. The minimum and maximum payments of this format can also fluctuate based on a variety of factors.