How Do Variable Annuities Work? 
Variable annuities are complex financial products that can make sense for a very small subset of people.Typically a payment or series of payments are made to fund the policy . The funds are then typically invested in non guaranteed investments such as stocks or mutual funds . The reason they are variable is that the gains or losses will vary period to period , subject to policy specific caps.Fees tend to be higher with this type of policy . Depending on your objectives , you should be able to find better alternatives . As always consult with a trusted advisor . 