What Are Variable Annuities? 
Before defining Variable Annuities , it is important to have an understanding about annuities in general . Immediate guaranteed annuity - in exchange for a lump sum the insurance company will pay a guaranteed amount for the rest of your life , -LRB- with or without a minimum payout guaranteed -RRB- or for a specified term or duration . Easy way to understand it is like a mortgage in reverse - you give lump sum and get income in return . Immediate variable annuity - in exchange for a lump sum you receive an income as above , all or part of the income amount depends on the performance of a pool of funds or an index chosen by you . Deferred annuity - you deposit fund with an insurance company and the funds are invested and you have guaranteed annuity amount or an option to receive at maturity -LRB- depending on what you had chosen -RRB- . Variable deferred annuity - In Canada , these are typically called segregated funds and are similar to mutual funds , but since they are issued by insurance companies , they have guarantees at maturity and death.The amount of the investment will vary depending on the performance of the funds chosen and can be converted into a immediate annuity at maturity . This is a very simple overview of a potentially complex subject and you should not take any action before discussing with a licensed professional . If you have further questions , or feel that I could be of assistance , please do not hesitate to contact me . If you would like to work with a local life insurance broker , you could start with a Google search . For example , if you search for : life insurance broker Halifax or life insurance agent Halifax , my name , along with several others , will come up . You can use the same method to find a life insurance broker in your community . . 