What is VARIABLE ANNUITY?

An annuity where premiums are used to purchase accumulation units. The value of the units are variable reflecting the value of the portfolio. When they reach payout they are turned into a fixed number and paid.

More On This Topic



Link to This Definition
Did you find this definition of VARIABLE ANNUITY helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary