Similarly, variable annuities have suffered their share of abuse in the marketplace. I think it's because they look different, with some distinct features other products don't have. Like the ugly duckling, variable annuities may be a misunderstood product in the marketplace. The story behind the story Simply put, variable annuities are long-term investments that can play a major role in retirement and income planning. However, you should be aware of the fees, charges, and tax implications that apply to a variable annuity, as well as any surrender charges that may apply.
Variable annuities are one of the fastest-growing insurance products.
These increases may indicate that as people's life expectancy increases, so does their concern that they may outlive their income. By the year 2010, it's estimated that life expectancy will be almost 85 years for women and over 81 years for men. This scenario raises questions about people's ability to maintain their lifestyles or pay for the potential of increasing medical costs. The U.S. Bureau of Economic Analysis says Americans are saving less than they ever have. The life span is going up but the savings rate is going down.