When Does A Variable Annuity Make Sense?
37376 POINTSview profileDavid G. Pipes, CLU®, RICP®Business Development Officer, T.D. McNeil Insurance Services, Fresno, CaliforniaA variable annuity makes sense when you want the features of an annuity but would like to have a more “hands-on” approach to the investment part of the annuity. There are a wide variety of options and even that approach can be tailored to you. Remember that it takes a variable annuity license to sell this product and you should make sure that the agent you are talking to is properly licensed.Answered on August 22, 2014flag this answer- 135 POINTSview profileBobby ScottAssociate, World Finance Group,The variable annuity will make sense based on your individual needs and personal circumstances. This type of annuity is a contract between the insurance company and the insured (i.e. client or customer). The insured pays one lump sum payment or may make other payment arrangements to the insurance company. Then, the insurance company agrees to make payments back to the insured at specific dates in the future. With the variable annuity, the client can receive monthly payments for the rest of his life. Also, this annuity protects you if you out live your assets. Variable annuities are also used to hedge against inflation. If you think you are going to live a long time, you should think about buying an annuity. Your beneficiary (i.e. children and other family members) may be able to receive the payments when you die. The variable annuity is tax-deferred. You do not pay taxes until you withdraw the money. Some variable annuities have a death benefit. Make sure you read the prospectus and ask a lot of questions. This type of investment is for the long-term and to help you meet your retirement goals and objectives.Answered on October 28, 2015flag this answer
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