Legal Definition of Variable Annuity
Meaning of Variable Annuity
A life insurance policy where the annuity premium (a set amount of dollars) is immediately turned into units of a portfolio of stocks. Upon retirement, the policyholder is paid according to accumulated units, the dollar value of which varies according to the performance of the stock portfolio. Its objective is to preserve, through stock investment, the purchasing value of the annuity which otherwise is subject to erosion through inflation.
Related Entries of Variable Annuity in the Encyclopedia of Law Project
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Variable Annuity in Historical Law
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Legal Abbreviations and Acronyms
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