Glossary

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VARIABLE ANNUITY

An annuity contract in which earnings accumulate based on the performance of the selected investment sub-accounts within the contract. The contract owner decides how the annuity cash value is allocated amongst a selection of investment options and can transfer funds among portfolios tax-free as objectives and market conditions change. Within a variable annuity, the principal and rate of return are not guaranteed. While a variable annuity has the potential for a high rate of return, it is also possible to lose one's principal.

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