An Annuity whose contract value or income payments vary according to the performance of the stocks, bonds and other investments selected by the contract owner.
An insurance company contract into which the buyer makes a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments beginning immediately or at some future date.
Purchase payments are directed to a range of investment options, which may be mutual funds, or directly into the separate account of the insurance company that manages the portfolios.
The value of the account during accumulation, and the income payments after annuitization vary, depending on the performance of the investment options chosen.