Good is a very subjective term. Variable annuities serve a specific purpose, primarily to act as a method to accumulate wealth through traditional investing while having some additional insurance benefits in coordination.
These benefits are:
Return of premium upon death, which means that if the investment perform poorly and the policy holder dies, his or her named beneficiary will receive at least the amount of money that was placed into the policy
Guaranteed Minimum Withdrawal Benefits (GMWB), which is a rider that can guarantee a certain appreciation of the money contributed to the policy, and a guaranteed income for the life of the owner of the contract and/or the lives of contingent owners.
An array of investment options from different mutual fund families that one can move in and out of without having to fill out additional paperwork or incur additional sales charges to make the move
If these are benefits that would benefit you, then variable annuities might be good for you.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Variable annuities are tied to the stock market in some fashion or another. So how good any particular variable annuity is depends on the performance of the account it is associated with or the portion of the stock market that it is invested in. There are no guarantees with any variable products. They may perform very well and they may loose money.
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These benefits are:
Return of premium upon death, which means that if the investment perform poorly and the policy holder dies, his or her named beneficiary will receive at least the amount of money that was placed into the policy
Guaranteed Minimum Withdrawal Benefits (GMWB), which is a rider that can guarantee a certain appreciation of the money contributed to the policy, and a guaranteed income for the life of the owner of the contract and/or the lives of contingent owners.
An array of investment options from different mutual fund families that one can move in and out of without having to fill out additional paperwork or incur additional sales charges to make the move
If these are benefits that would benefit you, then variable annuities might be good for you.