1. What is Variable Annuity Payment?

Variable annuity payments are calculated based on the performance of the underlying investment portfolio. The payment amount fluctuates based on the value of the investment units, the net asset value (NAV), and the annuity rate.

2. How Does the Calculator Work?

The calculator uses the variable annuity payment formula:

Where:

• \( Units \) — Number of annuity units
• \( NAV \) — Net Asset Value per unit
• \( Rate \) — Annuity rate (as percentage)

Explanation: The payment amount is determined by multiplying the number of units by their current value and applying the annuity rate.

3. Importance of Payment Calculation

Details: Accurate payment calculation helps annuity holders understand their expected income and plan their finances accordingly.

4. Using the Calculator

Tips: Enter the number of units, current NAV per unit, and the annuity rate as a percentage. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Why do variable annuity payments fluctuate?
A: Payments change based on the performance of the underlying investments, unlike fixed annuities which provide steady payments.

Q2: How often is the NAV calculated?
A: NAV is typically calculated daily at the close of the market.

Q3: What factors affect the annuity rate?
A: The rate depends on factors like the annuitant's age, gender, and current interest rates.

Q4: Are variable annuity payments guaranteed?
A: Unlike fixed annuities, variable annuity payments are not guaranteed and can go up or down.

Q5: How are taxes handled on these payments?
A: A portion of each payment may be taxable as ordinary income. Consult a tax professional for specific advice.