How Do Unit Linked Annuities Work? 
There are two basic types of annuities : immediate and deferred . With an immediate annuity , you exchange a lump sum for an immediate income . This is often used as retirement income . All , or part of , the income received from a unit linked annuity -LRB- variable annuity -RRB- fluctuates based on the performance of the fund or funds you have selected . A deferred annuity is an accumulation plan that provides the option of an income annuity in the future . In Canada unit linked or variable annuities are called segregated funds or seg funds . They are similar to mutual funds and their value will increase or decrease based on performance . Since they are issued by insurance companies , they do offer maturity and death benefit guarantees . Some offer the resets or the locking in of maturity guarantee to protect investment gains . 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 Retirement Planner , you could start with a Google search . For example , if you search for : retirement planner Halifax or retirement planning Halifax , my name , along with several others , will come up . You can use the same method to find Retirement Planners in your community . 