Variable Annuities: 4 Key Features to Understand

When you purchase a variable annuity, you will have many different features to consider. Many annuities allow you to choose additional options for your annuity plan. Here are some of the special features to consider with a variable annuity.

1. Survivor Benefits

One feature that is commonly offered by variable annuities is a death benefit for survivors. If you own an annuity and pass away, some of your benefits will be able to go to your beneficiaries. This might come in the form of regular payments or in a lump sum.

2. Including a Spouse

Another option that you have is to include your spouse in the annuity contract. With this option, the annuity could potentially last for as long as either spouse lives. This is a good way to ensure that neither spouse outlives your retirement money.

3. Tax-Free Switching of Investments

When you invest in a variable annuity, you will be able to choose which investments your money goes towards. If you decide to switch investments, you will be able to do so without incurring any tax liability.

4. Inflation Riders

Another feature to consider purchasing is an inflation rider. This will provide you with protection against inflation when it is time to start taking annuity payments.