Variable annuities have separate sub accounts with access to equity, bond and combinations for market returns with tax deferral of gains until withdrawals, surrender or annuitization. Variable annuity prospects must establish a financial risk tolerance to prove product suitability.
Variable annuities can be purchased as non-qualified or qualified with additional riders such as guaranteed income riders that generate are dependent on annuitization. But keep in mind that variable annuities are securities and have the risk exposure of market conditions that could lose money in the cash value account.
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Variable annuities can be purchased as non-qualified or qualified with additional riders such as guaranteed income riders that generate are dependent on annuitization. But keep in mind that variable annuities are securities and have the risk exposure of market conditions that could lose money in the cash value account.