In Canada, Variable Annuities are called Segregated Funds (Seg Funds) or Guaranteed Investment Funds (GIFs). They are similar to Mutual Funds. However, since they are issued by insurance companies, they have different features and benefits. The key features are described in the policy’s information folder.
Any amount that is allocated to a segregated fund is invested at the risk of the policy owner and may increase or decrease in value. The policy owner bears the investment risk. As an insurance product, they do have maturity and death benefit guarantees of 75% or 100%. Design and options do vary. An independent insurance broker can help you find a plan that is right for you.
If you have additional questions, please do not hesitate to contact me. Additional information is available at http://www.protectandgrow.ca