First, a straight life annuity is most usually set-up on a 'fixed' basis and not a 'variable' one. This is especially the case since the intent is usually to give the policyholder or 'annuitant' an income stream in retirement. A major point is that payments to an annuitant cease when the annuitant dies. The intent of the policy is to give the annuitant steady payments for his or her lifetime. Their is no beneficiary involved.
Some policyholders may want to speculate on the amount of regularly scheduled payments by purchasing a variable annuity but most would rather not risk negative investment results, adversely affecting their retirement payments. Therefore, back to the first point: Fixed annuities are more popular than variable ones.
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Some policyholders may want to speculate on the amount of regularly scheduled payments by purchasing a variable annuity but most would rather not risk negative investment results, adversely affecting their retirement payments. Therefore, back to the first point: Fixed annuities are more popular than variable ones.