 
Health Insurance California >> Annuity >> Variable Annuity Benefits Variable Annuity Benefits • It is an professionally run investment options The Death Benefit and Other Features of Variable Annuities A universal feature of variable annuities is the death benefit. If you die, a person you select as a beneficiary (such as your spouse or your child) will receive the greater of: (I) all your money in your account, or (ii) some guaranteed minimum (such as all purchase payments minus prior withdrawals if any). Example: You have a variable annuity that offers a death benefit equal to the better of account value or the total purchase payments minus withdrawals. You have made purchase payments totaling $10,000. In addition, you have withdrawn $500 from your account. Because of these withdrawals and investment losses, your account value is currently $4,000. If you die, your designated beneficiary would receive $4,500 (the $10,000 in purchase payments you put in minus $500 in withdrawals). Variable annuities sometimes have other optional features that also have extra charges. One common feature, the guaranteed minimum income benefit, guarantees a meticulous minimum level of variable annuity payments, even if you do not have enough money in your existing account (perhaps because of investment losses) to support that level of payments. Other features might contain long-term care insurance that pays for home health care or nursing home care if you become seriously ill. You may desire to look for the financial strength of the
insurance company that sponsors any variable annuity you are considering
buying. This could affect the company’s ability to pay few benefits that
are greater than the value of your account in mutual fund investment options,
such as a death benefit, guaranteed minimum income benefit, long-term
care benefit, or even amount you have allocated to a fixed account
investment option.
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