Variable annuities are an insurance product, a contract between you and an insurance company. They combine the features of an annuity (a guaranteed single or periodic payment from an insurance company) with the possibility of market gain (or loss) depending on the performance of an underlying investment strategy (the 'variable' part of the investment), similar to a mutual fund. Thus, the insurance company guarantees a minimum payment and any remaining payments can vary depending upon the performance of the underlying investments. Common drawbacks to variable annuities include substantial penalties for early withdrawal, the potential for substantial fees and expenses, and the addition of credit risk (the risk that the insurance company might default on its contractual obligations to you) to the market risk of your chosen investment strategy.
The investment and securities fraud attorneys at Moulton, Wilson & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Cindy Moulton, Michael Wilson and Lance Arney have successfully represented thousands of clients in securities and investment fraud cases, with combined claims of hundreds of millions of dollars.
If you have suffered an investment loss in a Variable Annuity, you may be entitled to recover all or part of your investment.