Can Variable Annuities Lose Money? 
A non-qualified variable annuity is an insurance policy and a security product with separate sub accounts with access to market equity and bond investments that can lose money in bad economic conditions . In addition , the guaranteed account that credits a current interest rate may not be enough overcome the variable annuity policy expense loads , so even the guaranteed account minus the policy expense could end up in a loss . Product suitability needs to be established by performing a personal financial profile that includes a risk tolerance assessment and financial planning goals . 