A variable annuity non profit is a great investment and retirement option that guarantees income to an individual for life. It differs from life insurance in that the policy owner gets compensated when they begin their retirement while life insurance involves compensation to a named beneficiary upon the death of the policy owner. Before embarking on investing in an annuity, the individual should research what the tax implications are because capital gains and original contributions are tax deferred until a payout is made in the future.

These plans refer to the class 403(b) provided to employees of not for profit organizations. Even though these policies are similar to the regular variable annuity plans, there are differences in how they are structured. Variable annuities are great investments for those who are looking to retire comfortably and an advisor can assist the individual in deciding which mutual funds to invest in.

The 403(b) is sponsored by the employer and it seeks to maximize returns for the employee when they retire. The advantage to this plan is that it allows the employee to contribute pre-taxed funds to it. Regular variable policies allow the individual to contribute to the retirement account after taxation so having a 403(b) lets the employee earn interest on the contributions immediately. Taxes are deferred to the end of the annuity when it is paid off and the original amount and all other contributions are used in determining amounts of taxes due.

They say when the deal is too good that one should think twice and so is the case with variable annuity non-profit policies. The fees associated with this kind of policy include an annuity fee, mutual fund fee and broker fees. These could cost the employee their retirement account and making it a waste of income. It is advisable that before an individual enlists in the variable annuity non-profit program to read about the details of the policy.

Another pro to the variable annuity non -profit policy is its ability to be used as collateral in the purchasing of big assets such as a home. The loans are from the pretax monies already contributed to the plan and the borrower must repay the loan over a period of fifteen years and for other loan needs, the loans must be repaid in five years. Variable annuity non profit is available in most insurance institutions and research should be done to avoid unexpected fees.