The Brief Explanation About What Is Variable Annuity Life Insurance? – When you plan on retire from your job, it is better to consider all of the things first because consideration before retirement is really important. The one and the most important thing that you have to consider before retire is about annuity because it can save the rest of your life. Annuity is a kind of insurance which you have to invest the money you have to the insurance company, and then in the fixed time, you will get the income monthly or annually. There are several types of annuity, and one that might suit you well is variable annuity. However, it is better to know all the things about variable annuity first before you decide on this kind of annuity.
If you have no idea about the variable annuity, you might ask about what Is Variable Annuity Life Insurance? Variable annuity is a kind of investment which is mostly based on options that you have to choose. The available options usually have its own risk and potential growth, so this kind of annuity is really suitable for you who have a perfect plan on the investment goal, and can tolerate with the available risks.
Several more things that will boost your knowledge about what is variable annuity life insurance are about its advantages and disadvantages. Variable annuity offers some features that will give you some advantages, such as, deferred taxation on investment growth, a chance to get a guaranteed death benefit, account values may be protected from creditor, tax-deferred earnings can be withdrawn if the annuitant needs it for a long-term medical treatment, and many more.
However, there are some of disadvantages that you have to anticipate, for examples, tax-deferred growth will ultimately be taxed, guaranteed death benefit generate mortality charges that can decrease your investment return, and so on. This information about what is variable annuity life insurance can be your consideration while making a decision in buying this kind of annuities. So, you will not regret while buying it.