• Tax-deferral. A variable annuity allows the interest, dividends, and capital gains on your investment to accumulate without incurring taxes. Withdrawals, however, will be subject to ordinary income taxes and, if taken prior to age 59½, a 10% federal tax penalty may apply.
  • Guaranteed lifetime payout options. After an accumulation period, the resulting value of your deferred annuity can be converted to a series of periodic payments that are guaranteed to last for your entire life.
  • Guaranteed death benefit options. These optional benefits can potentially shield your annuity assets from the effects of poor market conditions, providing protection for your beneficiaries.
  • Multiple investment options. You can choose from a variety of investment options, called subaccounts, that allow you to participate in the bond and stock markets. Since these markets can move up and down, performance is called “variable.” Investment options are subject to market fluctuation, investment risk, and possible loss of principal. At any time, you could receive less than the total of all premium payments.