What Is A Variable Annuity Life Insurance Policy?

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   Jim Winkler

   CEO/Owner, Winkler Financial Group, Houston, Texas

   That is a great question! Unless you are referring to the company by that name that is here in Houston, I think you might be confusing two separate things. There are variable whole life policies, and there are variable annuities, and both are insurance products, but they are vastly different things. Both have few guarantees on performance, and can make or lose money based upon the performance of the underlying investments. Variable products are generally considered securities, and are regulated by the SEC, while normal life insurance and annuities are not. Annuities require a period of time, at which point they pay out a stream of income; Life insurance pays when you pass away. The only other thing that I could imagine is a variable policy that is offering an income stream for the payout, as opposed to the lump sum benefit that is normally paid. I'd have to know more about what you were looking at to be sure. I hope that helps, thank you for asking!

   Answered on October 13, 2014

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