What is typically included within the features of a variable annuity?

A variable annuity typically includes a guaranteed death benefit, which is a key feature designed to provide financial security. This benefit ensures that if the annuity holder passes away before receiving full payouts from the annuity, their beneficiaries will receive either the total contributions made or the account value, whichever is higher. This feature adds a layer of protection for the policyholder's loved ones and can make variable annuities a more appealing option for those looking to plan their estate or provide for family members after their death.

In addition to the guaranteed death benefit, variable annuities also have the potential for investment growth through a variety of investment options. However, returns are not fixed or predictable, as they fluctuate based on the performance of the chosen investment options. Contributions to variable annuities are generally not capped, allowing for flexible funding, and fees are typically involved in managing the investments and maintaining the policy. Therefore, while the guaranteed death benefit is a significant feature, the other options either misrepresent the structure of variable annuities or provide inaccurate information regarding their characteristics.