If you are thinking of investing in annuity contracts, then you might need to consider variable annuity commission schedule Lincoln national offers. There are several kinds of annuity contracts but we will first look at what an annuity contact is. An annuity contract is an agreement signed between an insured individual and the insurance company where the individual takes a life insurance cover. He or she pays a single or several premiums that he will receive back on retirement over time from the insurance company. This is a kind of investment common with many people and it guarantees a distributed income when the individual retires or upon his death. However, upon death it is the next of kin mentioned in the contract get the payments.

When you purchase a variable annuity contract either by a single payment or a series of them, the insurer agrees to return the payments back to you immediately or at an agreed future date. This kind of annuity contract offers several investment vehicles in which your money can be invested in. the value of the investment you make in this contract varies depending on the performance of the investment vehicle that you choose. The investment options include; stock market, bonds, mutual funds and other money market instruments.

Since you fear that after retiring you might outlive your assets, a variable annuity contract protects you from this by guaranteeing a lifetime of periodic payments to you or your spouse. There is also another benefit with this kind of investment. If you die before getting the payments from the insurance company, you leave your beneficiary with the chance to get a specified amount of your purchase payments. This is termed as the death benefit and it is one of the strong points of variable annuities.

If you choose to keep the investment as a long term investment, then you will benefit by not paying tax as long as your money stays in the investment. Variable annuities enjoy a tax-deferred benefit but if you remove your money, you will attract ordinary tax income rates on the money. You can also choose to allocate specified percentages of your payments to the different investment options such as 40% to stocks, 40% to mutual funds and lastly the remaining 20% to money market instruments. However, the value of each will vary depending on the instruments performance. There is a variable annuity commission schedule Lincoln national applies to which you are supposed to enquire about as much as you can and understand before buying the variable annuity from an insurer.