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Please note that variable annuities involve investment risk and a variable annuity may lose value. Therefore, you should consider your ability to sustain investment losses during periods of market downturns.
Variable annuities are essentially an insurance contract combined with an investment product. Through a professionally managed "subaccount" (similar to a mutual fund portfolio) within your variable annuity, you invest in stocks, bonds or money market funds or a combination thereof.
Lincoln Level Advantage® indexed-linked variable annuity is a long-term investment product designed for retirement purposes. There are no explicit fees associated with the indexed-linked account options available.
Insurance companies issuing variable annuities provide a number of specific guarantees. For example, they may guarantee a death benefit or an annuity payout option that can provide income for life. These guarantees are only as good as the insurance company that gives them.
During a recession, variable annuities pose much more risk than fixed annuities because their performance is tied to market indexes, which recessions tend to pummel.
First, variable annuities have insurance features. For instance, if you die before the insurance company starts making income payments to you, many contracts guarantee that your beneficiary will receive at least a specified amount. This is typically at least the amount of your purchase payments.
Please reach out to your registered representative for more details on state approvals and firm guidelines. There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan. Not available in New York. For use with the general public.
What is the safest type of annuity? Income annuities and fixed annuities are among the safest financial solutions available. Variable annuities, on the other hand can be volatile as they invest in equities or bonds and therefore their performance is tied to the markets.