If, for example, you want to access more funds 10 years into your contract, you could face steep penalties. Unlike the set rate of a fixed annuity, variable annuities have variances tied to them.

Fact checked by Timothy Li Reviewed by David Kindness Living benefit riders have become an inescapable part of buying a ...

Variable annuity contracts can include other features, known as riders. For example, long-term care riders can help pay for assisted living expenses while income riders can guarantee a minimum ...

Annuities let you convert your savings into steady monthly payments that can last your lifetime, but come with high fees and ...

For example: For a person in the five years prior to or the five just after retiring, a variable annuity with income rider can protect them from sequence of returns risk. This 10-year period ...

for example, you might be required to pay a surrender charge that is typically between 5% and 7%. I understand that all these issues factor into the general fear of variable annuities — but as a ...

Annuities are binding contracts ... the annuity portfolio’s gains are capped at a certain percentage. For example, if an indexed annuity’s returns were capped at 75%, and the underlying ...

But annuities can play a role in a wide variety of estate planning strategies, too. Here are four examples you may want to explore with your financial advisor: Marry a Variable Annuity with a Roth ...

At its core, a variable annuity is designed to provide a steady stream of income during retirement. But these financial products are more complex, costlier and riskier than other types of annuities.