What Are Variable Annuities? 
That is a great question ! There are basically three types of annuities . Two are simple , and unregulated , as their performances have stated guarantees and payment amounts . They are fixed annuities , and indexed annuities . In the first , the rate of return is a clearly stated percentage . In the second , the rates of return can vary , and are tied to the performance of a market , typically the S&P 500 . Even when the market fails to perform , this type of annuity has provisions to protect your investment . The other type of annuity is the variable one . It has no such guarantees , and is considered to be a security , so it is highly regulated , and anyone selling it to you needs to be licensed by the SEC . This annuity can make or lose money for you ; it 's payments can vary , based upon its performance of the underlying investments . This is an investment that should be carefully considered before purchasing , even more so than usual . I hope that helps , thanks for asking ! 