Variable Annuity

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Dictionary Says

Definition of 'Variable Annuity'

An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio.
Investopedia Says

Investopedia explains 'Variable Annuity'

The portfolio generally invests in equity securities and its performance determines the amount of this total payment.

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