How To Use Variable Annuities? 
Non-qualified tax deferred variable annuities are classified as a security . Non-qualified tax deferred variable annuities have separate sub accounts using market equities and bond investments that can lose money and incur policy expenses . A personal financial profile needs to be created with a risk tolerance assessment before moving forward with the purchase of a non-qualified or qualified tax deferred variable annuities or the allocation of the separate sub accounts . Variable annuity policy expense loads can be a concern as policy expenses are paid out of deposits made into the annuity regardless of positive or negative performance . Variable annuities , like all annuities , are designed ultimately for generating income . You may want to consider purchasing an income rider that may offer guaranteed lifetime income . 