Variable annuities are considered investments and carry investment risk. With a variable annuity, your premiums are invested in a variety of sub-account options of your choosing, and the annuity's rate of return is based on the performance of those subaccounts. Variable annuity rates are not guaranteed, and they have the potential to bring you higher returns than a fixed annuity would. However, variable annuities might go down in value (based on the performance of the sub-accounts), but fixed annuities will not. Fixed annuities are not considered investments. Find out more about annuities as investments.