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These ratings tell you how financially stable the provider is, giving you confidence in the company's ability to fulfill its end of the annuity contract. Lincoln Financial Group holds high credit ratings from the four major credit rating agencies.
The value of a variable annuity is based on the performance of an underlying portfolio of sub accounts selected by the annuity owner. Fixed annuities, on the other hand, provide a guaranteed return.
A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic pay- ments to you, beginning either immediately or at some future date. You purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.
A variable annuity is a contract between you and an insurance company. With a variable annuity, the insurance company agrees to make periodic payments to you in the future. You can purchase a variable annuity contract by making either a single purchase payment or a series of purchase payments.
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.
While all annuities are regulated by state insurance commissioners, variable annuities and RILAs are securities and therefore are also regulated by the SEC and FINRA. Annuities are often products investors consider when they plan for retirement. They're often marketed as tax-deferred savings products.
Beneficiaries?With an annuity, you (and in some cases your spouse) are the primary beneficiary, so you receive all income payments. With life insurance, your spouse, your children, or your other designated heirs are the primary beneficiaries, so they will receive the death benefit after you pass away.
Is an annuity a life insurance policy? No, an annuity is an investment product you purchase all at once that earns interest and, after a set time frame or when certain conditions are met, starts paying out. It may be offered by life insurance companies, but it's not technically a life insurance policy.