What are variable annuities?

Variable annuities are long-term investment products offered by insurance companies that allow you to invest your money in a selection of sub-accounts, which are similar to mutual funds. The value of your annuity can fluctuate based on the performance of these investments, so your returns are not guaranteed. Variable annuities often offer optional features like death benefits or income guarantees, but these can come with additional fees. They are commonly used as a way to save for retirement or generate income during retirement.