How to Invest in a Variable Annuity

Each state has its own insurance guarantee association that will provide protection for you in the event that the insurance company becomes insolvent. You are never ever to put more money in an insurance company contract like an annuity that is more than what the state guarantee association will insure you for. The next type of annuity which I do not like is a variable annuity and a variable Annuity is equal to an insurance company issuing you a mutual fund that invests in different things but whatever you earn on it is tax deferred.