1. 4470 POINTS
    Brandon Roberts
    Owner, The Insurance Pro Blog,
    It may not necessarily be the case that anyone needs a variable annuity.  But variable annuities are well suited for people who are interested in taking on the additional risk available in the sub accounts available in a variable annuity, but also want the additional benefits afforded by a variable annuity.  These benefits include return of premium and riders that can generate guaranteed lifetime income based on a certain account balance.
    Answered on August 23, 2013
  2. 5082 POINTS
    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    In Canada, variable annuities are usually called segregated funds or seg funds. They are similar to mutual funds, but since they are issued by insurance companies they have certain guarantees and features.

    If you are looking for an equity investment, then segregated funds should be considered. In today's marketplace there are a wide variety of plans available with very competitive costs.

    Segregated funds are suitable for self-employed business owners and professionals. In addition, individuals who want to invest in equities, but would like maturity and death benefits guarantees. This is especially important if you are within 10 to 15 years of retirement or already retired.

    Segregated funds can offer:

    ➨➨ Death benefit guarantees of 100% or 75%
    ➨➨ Maturity guarantees of 100% or 75%
    ➨➨ Some plans offer the ability to reset or lock in market gains
    ➨➨ Potential creditor protection
    ➨➨ Estate planning advantages including avoiding probate which can save fees and provide privacy.

    If any of these are important to you then, you should consider segregated funds.

    More information is available at www.ProtectandGrow.ca

    If you have further questions, would like a second opinion, or believe I could be of assistance, please do not hesitate to contact me.
    Answered on July 18, 2014
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