What Rate Of Return Does A Variable Annuity Pay? 
That is a great question ! There are just about as many different variable annuity products out there as there are varieties of ice cream . And even more potential rates of return . You would really need to first understand that any variable annuity will offer several crediting options that will play a part in your return . Then understand that the performance of the underlying investments plays a part , and that the policy 's floors , caps , participation rates and guarantees all factor in . Variable annuities can be a great investment , or a very bad one , if you do n't understand how and why they work the way they do . Please consult a trusted agent or adviser before purchasing one of these products . If you are less risk tolerant , perhaps an indexed annuity might be a better product . They are tied to market performance , without the risk , and safer guarantees . Ask your agent or adviser to show you a couple of each to compare , okay ? Thanks for asking ! 