Individual annuities that mix non-variable and variable features offer both guaranteed growth and market-based potential, with payments starting within 13 months.
If you’re trying to understand annuities and feel overwhelmed by the terminology, you’re not alone. One option that often confuses people is Individual Annuities – Immediate Non-Variable and Variable. The name sounds complex, but the idea behind it is actually quite practical. This type of annuity blends safety and growth, while also providing income that starts soon after you buy it.
Let’s break it down in a clear, everyday way.
What Are Individual Annuities – Immediate Non-Variable and Variable?
An Individual Annuity – Immediate Non-Variable and Variable is an insurance contract that combines two ways of growing your money before it turns into income.
First, part of your money grows at a guaranteed interest rate. This is the non-variable portion. It’s stable and predictable, similar to earning interest in a savings account.
Second, another part of your money is invested in market-based portfolios, often called sub-accounts. This is the variable portion, and its value goes up or down depending on how those investments perform.
What makes this annuity “immediate” is that payments must begin quickly—within 13 months after purchase. You’re not waiting years to see income.
How the Two Parts Work Together
Think of this annuity as splitting your money into two buckets.
One bucket is the non-variable side. It earns interest at a rate guaranteed by the insurance company. Some contracts may also offer bonus interest on certain contributions. This portion is designed to protect your money and provide steady growth.
The other bucket is the variable side. This portion is invested in portfolios you choose, such as stock or bond-based options. Your accumulation here changes with the market. When investments perform well, your account can grow faster. When markets drop, this portion can lose value.
By combining both, Individual Annuities – Immediate Non-Variable and Variable offer balance—some stability, plus some opportunity for higher returns.
When Do Payments Start?
Even though the accumulation comes from two different sources, the income phase follows one important rule: annuity payments must begin within 13 months of purchase.
You may be able to choose how often payments are made, such as monthly, quarterly, or annually. The timing interval can vary, but the start date cannot be pushed too far into the future. This makes the annuity useful for people who want income fairly soon.
A Real-Life Example
Imagine you retire with $150,000 and want steady income but also hope for some growth. You buy an Individual Annuity – Immediate Non-Variable and Variable.
You place $90,000 into the guaranteed side, earning a fixed interest rate. The remaining $60,000 goes into investment portfolios you select. Over the next several months, both parts accumulate value in different ways.
Within a year, your annuity begins paying you income. Part of that income is supported by the guaranteed portion, while the variable side may increase or decrease future payments depending on investment performance.
Why People Choose This Type of Annuity
Many people like this annuity because it doesn’t force them to choose between safety and growth. It offers:
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Guaranteed interest on part of your money
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Growth potential tied to market performance
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Income that starts relatively quickly
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Flexibility in how payments are scheduled
For retirees or near-retirees, this mix can feel more comfortable than going all-in on either fixed or variable options alone.
Important Things to Consider
While Individual Annuities – Immediate Non-Variable and Variable offer flexibility, they’re not risk-free. The variable portion can lose value if markets perform poorly. Also, once payments begin, access to the original lump sum is usually limited.
Fees may also apply, especially on the variable side, so it’s important to understand the costs before committing.
Final Thoughts
Individual Annuities – Immediate Non-Variable and Variable are designed for people who want income soon, along with a balance of guaranteed growth and market opportunity. By combining stability and flexibility, this type of annuity can fit well into a broader retirement income plan—especially for those who want predictability without giving up all growth potential.
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