Variable Annuity
In contrast to a fixed annuity, the key features of a variable annuity can fluctuate (they are “variable”) during the accumulation period and during the payout phase. Also in contrast to a fixed annuity, the variable annuity contract holder assumes much of the investment risk. With a variable annuity, the insurance company provides the contract holder with the ability to determine how his or her premiums are invested. One investment option is a variable account which typically consists of equity, bond or money market mutual funds. The other option is the general account of a variable annuity which provides a guaranteed return. The contract holder decides how much risk or variability they want to tolerate by allocating premium payments among the general and variable accounts. The amount of money accumulated and the amount of income during the payout phase are determined by the returns of these accounts. With a variable annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a variable or non guaranteed rate; 3) payments are variable and can begin immediately or at some future date.
Achaean Financial is Proving Innovation is Alive and Well in the Annuity Business
Lorry Stensrud, a seasoned executive turned entrepreneur, is on the leading-edge of retirement income product development with his new Venture Achaean Financial.
Achaean’s Income Plus+ product provides a relatively high level of guaranteed starting income while maintaining both...
Bob MacDonald on the Unprecedented Opportunity in the Annuity Industry
Bob MacDonald has had a storied career as a leading entrepreneur and executive in the financial services industry.
Some of Bob’s roles include: president and CEO of ITT Life; founder, chairman and CEO of the highly successful LifeUSA, and; CEO of...
Francois Gadenne and the Formation of the Retirement Income Industry
Francois Gadenne is the Chairman and Executive Director of the Retirement Income Industry Association (RIIA).
Formed in 2006, RIIA is bringing together the leading minds and resources in the relatively young retirement income industry. RIIA members include leading academics, banks, insurers, fund companies, financial...