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In a variable annuity, the policyholder bears the risk of principal loss. This is because the value of the annuity is tied to the performance of underlying investment options, such as stocks and bonds, which can fluctuate in value. If these investments perform poorly, the account value can decrease, potentially leading to a loss of principal. Unlike fixed annuities, which offer guaranteed returns, variable annuities do not provide such guarantees, increasing the investment risk for the policyholder.
What else can I help you with?
Can you give me a sentence using compensate?
We cannot compensate you for your loss.
Difference between loss systems and delay system?
1) In a loss system overload traffic is rejected without being serviced. In a delay system overload traffic is held in queue until the facilities become available to service it.2)conventional circuit switching operates as a loss system since excess traffic is blocked and not serviced without a retry on the part of the user. Store-and-forward message or packet switching obviously posses the basic characteristics of a delay system3)The basic measure of performance for a loss system is the probability of rejection(blocking probability). A delay system on the other hand is measured in terms of service delays.
Which of the following is the best definition of the term risk?
the probability and severity of loss or adverse impact from exposure to various hazards
Is risk an idea noun?
Yes, the noun risk is an idea (abstract) noun, a word for a possibility of loss or injury, a word for a concept.
How do you calculate gain and loss on covered call options?
G/L = (amount sold (for underlying security) - amount paid (for underlying security))+ premium paid There are commercial tools available to help you with covered call trade selection and covered call portfolio management. They will also perform the profit/loss calculations. See www.borntosell.com as an example.
Can an annuity potentially result in a loss of funds?
Yes, an annuity can potentially result in a loss of funds if the investments underlying the annuity perform poorly or if the fees associated with the annuity are high.
What is variable annuity and there sub-accounts?
A variable annuity is a contract with an insurance company that guarantees payments for life. Variable annuities include the option to invest in a wide variety of different asset classes known as subaccounts which can consist of different stock and/or bond portfolios. The payments from a variable annuity can fluctuate up or down based on the performance of the assets held in the subaccounts chosen. Variable annuities can offer different payment guarantees based on the terms of the contract. For example, if the purchaser of a variable annuity thinks there is a risk of poor performance in the subaccounts chosen it is possible to receive a guarantee of a minimum income payment in return for the payment of a fee. The benefit of investing in a variable annuity is the opportunity for growth in the benefit payment if the underlying subaccounts perform well. By contrast, investors in a fixed income annuity have the security of a guaranteed payment for life or a fixed period of time but may suffer due to a loss of purchasing power. Diversification is one of the golden rules of investing which is why many financial advisers recommend putting some of your money into both variable and fixed income annuities.
Is a fixed index annuity good for older persons.?
Yes. A Fixed Index Deferred Annuity offers the senior; [1] a fixed guaranteed interest rate annually, [2] additional growth potential with index market growth, [3] are tax deferred allowing the entire amount of principle and gains to snowball and increase total equity growth. [4] has zero risk to principle or gains. The key word in an annuity is "variable". A variable annuity is at risk of loss of all gains and sometimes principle. Avoid any annuity with the word "variable".
What is an equity indexed annuity?
An equity indexed annuity is a fixed annuity product offered by an insurance company. It is a unique product for those individuals who want reliability without the risk of loss from the market as in a variable product. You place a sum of money or periodic payments into a product that the company utilizes a market in order to factor what interest you will make. You will not lose your principle or accrued interest due to market loss because your money is never in the market or index.
What is the win loss record for the bears on monday night?
The win/loss record for the Chicago Bears currently is 18 wins and 32 losses as of 27Sept2010
You lost money on an annuity account can you claim it as a loss?
If it is a tax preferred type account....oike in your IRA or 401k, no.
What is the reason behind the loss of polar bears?
HUMANS
What is the win loss record for the bears and vikings?
it depends on the year
Loss of precision error in java?
A loss of precision error occurs when you use a variable of a data type that holds more decimal values than the type of the variable you are converting/inserting to.
What was the win loss record of the bears in 2011?
the bears were 8 -8 they started losing when jay cutlur got injured
Why copper loss is called variable loss?
Cu loss means I^2*R loss so it depends on R and I.If we make wire more resistive it means it will increase the value of R so copper loss will be increase.So to concentrate on wire size we can vary the R value and can protect the copper loss.So it is called variable loss.
From what are polar bears at risk?
loss of ice due to global warming
