Sentences with phrase «value of a variable annuity»

For instance, the value of a variable annuity invested in mutual funds varies with the value of the funds, which can go down.

The accumulation value of a variable annuity is based on the performance of the separate accounts (aka: mutual funds) offered by the specific product.

If there is a loss - If you the current value of your variable annuity is lower than the cost basis, you have a loss.

By locking the One - Year Enhanced Death Benefit Rider in at the highest annual contract anniversary, you may be able to increase the value of your variable annuity for your beneficiaries.

By locking the One - Month Enhanced Death Benefit in at the highest monthly contract anniversary, you may be able to increase the value of your variable annuity for your beneficiaries.

Not exact matches

While the value of underlying subaccounts of variable annuities fell through the floor like everything else in the market in 2008, the guaranteed income withdrawal rate (not to be confused with the rate of return of the investment portfolio) did not.

Investing in a variable annuity involves risk of loss — investment returns and contract value are not guaranteed and will fluctuate.

A record 16 variable annuity writers participated, comprising $ 215 billion in account value as of September, 2017..

The DOL fiduciary rule has provided an impetus for change in much of the financial planning world — and the variable annuity marketplace is one area that may be evolving in such a way that the new fee - based products may actually add value for clients who are interested in variable products.

Historically, advisors have been compensated for the sale of variable annuity products on a commission basis, which is believed to motivate advisors to recommend products because of their high commission value, rather than because they are in the client's best interests.

Variable annuities provide the potential to grow your assets and defer paying taxes on the earnings until you withdraw them as income.1 A diverse menu of professionally managed investment choices allows you to invest your contract value in a way that reflects your goals, time horizon, and risk tolerance.

While fixed annuities offer the opportunity to accumulate value at a fixed rate of interest, variable annuities offer investment flexibility that might generate higher rates of return, based on the performance of your underlying investments.

If those variables do well, a variable annuity will pay you more than the fixed annuity of same initial value and term would pay.

Steven R. Gorham, CFA, is an investment officer of MFS Investment Management ® (MFS ®) and a portfolio manager of the value and global balanced portfolios of our mutual funds, variable annuities, and institutional investment products.

While fixed annuities offer the opportunity to accumulate value at a fixed rate of interest, variable annuities offer investment flexibility that might generate higher rates of return, based on the performance of your underlying investments.

On the opposite end are variable annuities which carry more risk of investment loss AND also may offer the opportunity for higher returns and cash value growth.

The key difference with variable annuities (vs. other types) is that the sub accounts offer the opportunity for a higher rate of return if asset values increase.

Group variable annuities will fluctuate in value and may be affected by market declines, including a possible loss of principal.

For example, a deferred variable annuity may guarantee that your beneficiary will receive at least the amount of your original principal if you die, even if the value of the annuity has declined due to poor performance of the subaccounts you selected.

Variable annuities were introduced in the 1950's as an alternative to fixed index annuities which offer a guaranteed contractual rate of interest in terms of the cash value growth of the account, similar to dividend paying whole life insurance.

A PerspectiveSM variable annuity includes a standard death benefit equal to the contract value on the date of the claim and does not include any additional guarantees.

IFRS accounting for variable annuity liabilities is not necessarily consistent with the economic value of these liabilities.

That's because money is allocated to investment portfolios available with the variable annuity, and the annuity's account value will fluctuate based on the performance of those investment portfolios.

In addition, some index - linked annuities provide opportunities to protect a portion of the annuity's account value, while variable annuities with a guaranteed withdrawal benefit feature can protect the amount of a person's future income.

While variable annuities have certain advantages, there are some risks, including fluctuating values and possible loss of principal.

While variable - indexed annuities have certain advantages, there are some risks, including fluctuating values and possible loss of principal.

A variable annuity is just a tax - deferred annuity in which you get to choose how the value of the annuity is invested.

Investing in a variable annuity involves risk of loss — investment returns and contract value are not guaranteed and will fluctuate.

To the other extreme, there are variable annuities with a fixed $ 20 / mo mortality fee which on a large valued account can be a tiny fraction of a percent of the funds invested.

Securities (including mutual funds and variable life insurance) and annuities involve investment risks, including the possible loss of value.

If your account does well (let's hope there are better times ahead), many variable annuity sponsors will periodically increase the death benefit so it equals the actual account value instead of your original cost basis.

Upfront bonuses can help recoup investment losses helping to ease the pain of exchanging a variable annuity that's lost value in the stock market.

Variable annuity policyholders might be hesitant to cash in their account for fear of losing the higher value that might be passed on to their beneficiaries at passing.

If you own a variable annuity and think your principal is protected just call the customer service number of your variable annuity company and ask them «Is my account value guaranteed or protected from loss?»

Double digit under performance, compounding high fees, and market corrections can cause a variable annuity owner to lose a major amount of the annuities cash value.

So to summarize, in my opinion variable annuities could have fees in access of 4 percent, your principal is not guaranteed and if the market drops your account value will most likely drop with it.

This included overstating total fees of existing variable annuities or misstating fees tied to additional options such as riders, understating or failing to disclose the existence of an accrued living benefit value clients would lose on getting out of the annuity, and telling clients a proposed variable annuity had a living benefit rider when in fact it didn't, Finra says.

There are several types of annuities but they can be generally categorized according to how the annuity is purchased (simple or flexible premiums); when the annuity payments begin (immediate or deferred); and how the policy value is invested (fixed or variable).

Variable annuity contract values will fluctuate and are subject to market risk including the possible loss of principal.

If you invested $ 3,000 of it in a portfolio stocks there kind of is something of a variable annuity that locks in that value at maturity for you.

Variable means the value of the units (shares) inside the annuity «varies» daily with the markets.

Amounts in a variable annuity's investment portfolios are subject to fluctuation in value and market risk including loss of principal.

The cash value of an annuity account is set by the contract, similar to the cash value accumulation and life insurance, and varies between a fixed index annuity on one end of the spectrum AND a variable annuity on the other end.

Variable annuities are subject to fluctuation in value and market risk, including loss of principal.

We provide a full range of legal and regulatory services to insurance companies, broker - dealers and service providers relating to the design, marketing, and sale of variable insurance products, individual and group annuities, fixed indexed annuities, market - value - adjustment products, synthetic annuities, BOLI, funding agreements, stable value wrap contracts, and other innovative products.

This guarantees that, should the investor die during the accumulation phase of the variable annuity, the account owner's beneficiary will receive at least the amount of the investor's contributions minus withdrawals or the current market value of the account.

Total Future Income Purchases For individuals who funded the Future Income rider on a variable annuity policy, the total amount of voluntary deductions from the Variable Accumulation Value used to purchase Future Income Pvariable annuity policy, the total amount of voluntary deductions from the Variable Accumulation Value used to purchase Future Income PVariable Accumulation Value used to purchase Future Income Payments.

For a variable universal life or variable annuity policy, the accumulation value is equal to the sum of the amounts in the Separate Account, the Fixed Account and the Dollar Cost Averaging Advantage Account (if available) on that date.

The fee structure in broker sold variable annuities such as the one in the analysis above is such that it diminishes the value of the guarantees the products are supposed to provide.

The array of products that Western Reserve Life Insurance Company offers for individuals range from financial products, annuities, Term Life Insurance, Universal Life Insurance, Index Universal Life Insurance, 2nd to die policies, to their most famous and valued product which is the Variable Universal Life (VUL) insurance policy.