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variable annuity

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variable annuity

–noun
an annuity in which the premiums are invested chiefly in common stocks or other securities, the annuitant receiving payments based on the yield of the investments instead of in fixed amounts.
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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variable annuity  
n.  An annuity in which payments to the annuitant vary according to the changing market value of the underlying investment.
The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Financial Dictionary

Variable Annuity

An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.

Investopedia Commentary

The portfolio generally invests in equity securities and its performance determines the amount of this total payment.

Related Links

Anything But Ordinary: Calculating The Present And Future Value Of Annuities
Getting the Whole Story on Variable Annuities
Passing the Buck: The Hidden Costs of Annuities
Should You Exchange Your Variable Annuity?

See also: Annuity, Deferred Annuity, Fixed Annuity

Also spelled: Variable Annuities

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

variable annuity

An annuity with payments to the annuitant that vary depending upon the investment success of a separate investment account underlying the annuity. Because the invested funds are primarily in common stock, this annuity offers greater potential rewards and greater attendant risks than annuities supported by fixed-income securities. Compare fixed annuity. See also hybrid annuity.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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Legal Dictionary

Main Entry: variable annuity
see ANNUITY
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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