Explore: Variable Annuity

Investment Growth with Lifetime Income Potential

A Variable Annuity is a type of insurance product that allows your premium to be invested in market-based subaccounts, offering the potential for higher returns along with the risk of loss. Variable Annuities are designed for individuals who seek greater growth opportunities and are comfortable with market fluctuations, while also desiring tax-deferred growth and optional lifetime income benefits.

Unlike Fixed or Indexed Annuities, a Variable Annuity does not offer a guaranteed interest rate or market protection. Instead, your contract value will rise or fall based on the performance of the investments you choose.

Navigation Tip: For a seamless experience, click picture or image within section — or the section title — to return to the Types of Annuities Section overview page.

1. Market-Driven Growth Potential
Variable Annuities provide access to a range of professionally managed investment subaccounts, which may include stocks, bonds, and other asset classes. This gives your money the potential to grow with the market over time—but also exposes your principal to investment risk.

2. Tax-Deferred Growth
Earnings in a Variable Annuity grow tax-deferred, meaning you won’t pay taxes until you begin withdrawals. This can help accelerate accumulation, especially over longer time horizons.

3. Optional Lifetime Income Riders
Many Variable Annuities offer guaranteed income riders (available for an additional cost), which provide the option to receive a lifetime stream of income—regardless of how your investments perform.

4. Death Benefit Protection
Variable Annuities may include standard or enhanced death benefits, ensuring that beneficiaries receive a minimum guaranteed amount, even if market performance declines.

5. Flexible Investment Choices
You can customize your investment strategy within the annuity by selecting from a variety of subaccounts aligned with your risk tolerance, objectives, and time horizon.

6. Surrender Periods and Fees
Most Variable Annuities include a surrender charge period, during which early withdrawals may incur fees. Additional fees may apply for mortality & expense (M&E) charges, administrative costs, and rider features.

With a Variable Annuity, your contributions are invested in underlying subaccounts, similar to mutual funds. The value of your annuity is determined by the performance of these investments:

• If markets perform well, your contract value may grow significantly.
   
• If markets decline, your contract value may decrease—including principal.
   

Optional riders may guarantee a level of income or benefits regardless of investment results, but rider fees and restrictions apply.

Variable Annuities may be suitable for individuals who:

• Seek higher growth potential through market-based investing
   
• Value tax-deferred accumulation for retirement
   
• Want to customize investment allocations
   
• Desire optional income guarantees or enhanced death benefits
   

They may not be ideal for individuals who are risk-averse, need short-term liquidity, or prefer guaranteed growth without investment exposure.

• Variable Annuities are insurance contracts with investment components and are subject to both insurance-related fees and investment management fees.
   
• Products are sold by prospectus only. Investors should carefully read the prospectus and consider the investment objectives, risks, charges, and expenses before investing.
   
• Guarantees are based on the claims-paying ability of the issuing insurance company and do not apply to the performance of subaccount investments.
   
• Withdrawals prior to age 59½ may be subject to a 10% IRS penalty and income taxes.
   
• Investment returns are not guaranteed and your contract value may fluctuate with market conditions.
   
• Riders and optional benefits may involve additional fees and restrictions.
   

Consult with a licensed financial professional to determine if a Variable Annuity is appropriate based on your financial goals, time horizon, and risk tolerance.

To learn more or review available Variable Annuity options, we invite you to:

• Compare investment features and rider benefits through our Explore & Enroll Platform
   
• Speak with a licensed advisor for customized illustrations and suitability assessments

• Request educational materials to understand the investment structure and disclosures

Click Button to Return | Types of Annuities | Section 2