YOU ASK:

What is the definition of A-Share Variable Annuity?

WE ANSWER:

An A-Share Variable Annuity is a variable annuity that requires the annuity owner to pay sales charges at the start of the contract. The sales charges are paid in lieu of a surrender charge that is levied if ever the annuity owner decides to surrender the annuity.

As for its variable component, this refers to the fact that the annuity payments are not guaranteed - they will depend on the performance of the investments. The insurance company will only guarantee a minimum return, the remaining income payments may change. This is contrasted with the fixed annuity, which guarantees the payments of the annuity, whether the investments perform well or not.

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