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Question 23 of 31 in Basics

What is a variable annuity?


The annuities described so far have clearly specified rates of return and guarantees that are spelled out when the contract is signed. Variable annuities do not have guaranteed returns. The annuitant selects from a list of possible investments and the annuity return depends on how well those investments do, rather like a mutual fund. There is usually some provision for switching investments.
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