variable annuityvariable annuity
variable annuity - Investment & Finance Definition
An annuity in which the payment depends on the performance of the underlying investments. An annuity is an investment product sold by an insurance company that guarantees a minimum return to the annuitant. A variable annuity contrasts with a fixed annuity, in which the insured knows exactly what return he or she will get, and the insurance company bears all the investment risk.