Even though people live in the present, it is always wise to plan for the future. On that train of thought, many people use various ways to ensure their retired life, but once in a while they want to know all the available options before making a decision. One such question that sprouts up in these conditions is what are variable annuities?

Although an individual could make a number of plans to ensure a comfortable retired life, no plan offers the amount of security that a variable annuity does. Variable annuity is the legal contract between you and an insurer that is based on the facts that you will either pay a lump sum or installments of payments to the insurer till a certain predetermined date.

That being done, you will then be able to get back your payments along will all the interest or profit they may have gathered during that amount of time or simply agree to accept timely payments that the insurer will pay you as per a pre determined plan. With the variable annuity, you can get to choose exactly which field you wish your payments to be invested, be they some kind of mutual fund or some specific field of business.

 What Are Variable Annuities

You will then be guaranteed a certain amount of payment after a certain amount of time. Of course these payments will be directly proportional with the amount you let your capital lay, the amount of capital you actually invested and other similar things like that.

The variable annuities can either be pre determined to be paid back in a single payment, in small payments as long as you live along with some more to your beneficiaries when you die or for a certain amount of time whether you live or not. Payments will be made to your next of kin in case you are not around. Whichever the case may be however, you can be assured that the way variable annuities guarantee you a comfortable life in the afterwards, nothing else does.