Annuities:  The Shocking Truths Revealed

Discover the Shocking Secrets About Annuities that Banks
and Insurance Companies Don't Want You to Know.

-- By Tony Bahu
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Variable Annuity Quote

If you have a knack for picking winners on the stock and bond markets, buying variable annuity will ensure that you are more than comfortable in your golden years. Getting variable annuity quotes from as many providers as you can will present you with a wide choice and help you find the variable annuity contract that is perfect for you.

Annuity is a tool millions use to make sure that they are financially secure when they retire. An annuity is a contract between you and an insurance/financial company under which you either pay premiums over several “accumulation” years or a lump sum, in return for which you get regular payments from a date of your choice. These payments could continue for a fixed period (say 20 years) or as long as you live.

In case of a variable annuity, the money you give is allocated to various investment options called subaccounts that are like mutual funds. These investments can be as bullish or as conservative as you like. The benefit here is that if you get lucky, you could make a lot of money in contrast to the low returns you would get under a fixed annuity that is linked to the prevailing interest rate.

But there is an element of inherent risk in a variable annuity that your should be aware of. While you could make huge gains if your subaccounts do well, you could just as easily lose money if the stocks, bonds and funds your money is invested in perform badly. When the payouts begin, they fluctuate according to the performance of your investments. So if you wish to have a steady and guaranteed earning post-retirement, a variable annuity is perhaps not the right choice for you.

Earnings on a variable annuity are tax-deferred, which means they are not taxed till the payouts are made. Most variable annuities also offer death benefit under which your beneficiary would get what you invested in the annuity should you die before payout begins.

Before buying variable annuity, spend a few minutes online to read advice from experts - many of whom incidentally feel it is too risky a proposition in most circumstances. Also remember to browse through , a web resource that informs you of the potential dangers in annuity deals and offers a product that helps you understand exactly what goes on with your hard earned money. And never forget to check an insurance company's rating with reputable credit rating agencies before taking your business to it.