What Are Variable Annuities? 
Variable Annuities have separate sub accounts that have access to market equities and bonds . Market equities and bonds have risk . That risk could expose the contributions or deposits to loss in the cash value account . A personal profile to establish risk tolerance is necessary of product suitability . Any gains in a non-qualified variable annuity accumulate tax deferred . Distributions of gain are subject to ordinary income tax . There are also variable annuity expenses loads associated the policy as well as extra expenses for various riders . 