google bot detected Immediate Variable Annuity Contract | Insurance Glossary |

Immediate Variable Annuity Contract

Definition of "Immediate variable annuity contract"

A contract sold by insurance companies that is bought by means of a single lump sum payment usually providing a monthly income payment for the annuitant's life. The amount of the monthly income payment varies according to the performance of the underlying portfolio of investments. A stipulated rate of return (assumed interest rate/assumed investment return) is assumed when the insurer calculates the initial income payment to the annuitant. If the underlying portfolio produces a net return greater than or less than the stipulated rate of return, the income payments will rise or decline accordingly.

Related Real Estate Glossary terms

Related Real Estate FAQ