What Are Variable Annuities Insurance? 
A variable annuity is a security product and an insurance product under the oversight of FINRA and the department of insurance . Most variable accounts use two account classifications : separate subaccounts and guaranteed interest account . The separate subaccounts have equity and bond investments and the guaranteed account is tied to an interest rate for a given period of time . Non-qualified variable annuities accumulate tax deferred with distributions of gain taxed as ordinary income . 