In addition, some contracts, especially single premium deferred annuities, will waive all surrender charges if the credited interest rate falls below a particular rate commonly known as the bail-out rate. Variable Annuities Variable annuity premiums are invested in stocks, bonds, money market instruments, mutual funds and real estate. The cash value is not guaranteed and it will increase or decrease in direct proportion with investment results. You can choose your own investment strategy and you bear the entire investment risk. Some contracts provide an additional guaranteed cash value investment option similar to deferred annuities.
Variable contracts are available on either a single premium or flexible premium basis.
You may elect an annuity payout option with guaranteed payments similar to options offered with deferred annuities. You may select a payout option where the amount of your income will increase or decrease based on investment experience.