What is the difference between paying a lump sum upfront for a variable annuity and just investing in the underlying? Is it just that the annuity guarantees scheduled payments so you do not have to worry about that aspect of the investment?
Annuities usually pay for life and are frequently contexted to life insurance contracts
Not like other annuities, the motivation of the owners of variable annuity is to earn profits and usually sell it before the payout phase.
Comparing the general investment, variable annuity has the following advantages: tax-deferred growth and protection from creditors.
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