What Are Variable Annuities? 
A variable annuity is a contract issued by a life insurance company . In order to sell such a contract the agent must also hold a variable license and must have passed exams from FINRA . The reason for all this is that the funding mechanism for a variable annuity may contain investments that are linked to the stock market . The owner of the annuity may direct the investments and may change them as required . The funding is not guaranteed . Sometimes the annuity payments continue to be subject to the actions of the market making those particular payments variable as well . 