Buy a Variable Annuity in Virginia

Monthly Payout Estimates for a $100,000 Annuity

A $100,000 annuity can generate varying monthly income depending on the type of annuity you select, your age, and the payout option. For a fixed annuity with immediate lifetime income starting at age 65, you might receive around $500 to $600 per month.

However, if you choose a variable annuity, the monthly payment isn't fixed—it will rise or fall depending on how your investment subaccounts perform unless you select a guaranteed income rider.

If a guaranteed lifetime withdrawal benefit (GLWB) is added to the contract, you may receive a fixed monthly income for life, even if the market value drops. This typically results in lower monthly income initially, but offers added long-term security.

Process for Buying a Variable Annuity in Virginia

Purchasing a variable annuity in Virginia involves several key steps:

1. Consult a Licensed Financial Professional: In Virginia, only agents licensed with the State Corporation Commission's Bureau of Insurance and registered with FINRA can offer variable annuities.

2. Determine Your Retirement Goals: Variable annuities are best suited for long-term retirement savings, especially if you're looking to grow assets tax-deferred and have a stream of income in retirement.

3. Compare Product Features: Review investment choices, income options, fees, and rider availability. Riders like GLWBs or death benefits can be beneficial depending on your needs.

4. Submit an Application: Once you've selected a product and funding source, fill out the application with your licensed advisor. You'll also receive a prospectus detailing all contract terms.

5. Take Advantage of the Free-Look Period: Virginia mandates a 10-day cancellation window, giving buyers time to reconsider the purchase and receive a full refund if they change their mind.

Monthly Income from a $50,000 Annuity

Smaller annuity contracts offer proportionally smaller payouts. For a $50,000 fixed immediate annuity purchased at age 65, the monthly payment might fall in the $250 to $300 range. This varies by provider and selected payout option (e.g., life-only, joint life, period certain).

For a variable annuity, the amount could fluctuate unless a rider is added. In that case, the income might mirror fixed annuity levels with the potential for upside market growth over time.

Income Potential with a $300,000 Annuity

Investing $300,000 into an annuity offers the potential for a meaningful monthly payout. If you select a lifetime income option starting at age 65, a fixed annuity might pay between $1,500 to $1,800 per month, depending on rates and the insurer.

With a variable annuity plus an income rider, the monthly figure could be similar, often starting at 4% to 5% of the income base, with potential growth depending on market performance. This route can provide both protection and a chance to grow income over time.

Purchasing a Variable Annuity in Virginia

Yes, you can absolutely buy a variable annuity in Virginia, provided the sale is facilitated by a licensed insurance agent who also holds the appropriate securities licenses. Virginia allows residents to invest in a wide array of variable annuity products offered by both national and regional insurance companies.

The Bureau of Insurance regulates annuity sales to protect consumers and ensure advisors comply with ethical and professional standards. Before purchasing, make sure to ask about all applicable fees, withdrawal restrictions, and income guarantees.

Features of Today’s Variable Annuity Products

Modern variable annuity contracts are much more versatile than in years past. Common features include:

• Tax-Deferred Growth: Earnings are not taxed until withdrawn.

• Subaccount Options: Access to a wide variety of mutual-fund-like investments.

• Optional Riders: Income riders, death benefits, and enhanced withdrawal protections.

• Liquidity Options: Many allow annual free withdrawals (typically up to 10%).

These products are designed for long-term planning and should be considered carefully alongside other retirement income sources.

Places to Purchase an Annuity

You can purchase an annuity through several sources in Virginia:

• Independent Insurance Agents: Represent multiple carriers and offer comparison options.

• Financial Advisors: Many are dual-licensed to sell annuities alongside investment products.

• Insurance Carriers Direct: Companies like Nationwide, Pacific Life, and Allianz allow direct purchases through company representatives.

• Banks and Credit Unions: Many partner with annuity providers and offer products to customers.

Regardless of where you buy, make sure the representative is licensed and willing to explain contract details clearly.

Role of an Annuity Agent

An annuity agent is a licensed professional who helps you understand, choose, and purchase annuity products. In Virginia, annuity agents must be:

• Licensed with the Virginia Bureau of Insurance

• Certified through FINRA to sell variable annuities

• Compliant with annuity training and suitability regulations

Good agents work to match your retirement goals with appropriate annuity options and help manage expectations regarding returns, fees, and access to funds.

What an Annuity Broker Can Offer

Unlike an agent tied to a specific company, an annuity broker typically represents multiple insurance providers. This means they can:

• Offer a broader selection of products

• Shop for better rates and lower fees

• Customize solutions across different carriers

Working with a broker can be a smart way to get an unbiased comparison of available annuity options in Virginia. Make sure your broker has experience specifically with variable annuities and understands both the investment and insurance sides of the product.

Nationwide Advisory Retirement Income Annuity Overview

Nationwide’s Advisory Retirement Income Annuity is a popular option in the fee-based annuity space. Designed for clients working with fee-only advisors, this annuity provides:

• Guaranteed Lifetime Income: Optional GLWB rider for predictable payouts.

• No Commission-Based Sales Charges: Transparent pricing for RIAs and clients.

• Flexible Investment Choices: Access to model portfolios and diverse subaccounts.

• Fee Transparency: Typically around 0.50% to 1.25% total annual cost.

This product is well-suited for individuals looking for a balance of investment growth potential and retirement income guarantees, without the commission-driven sales pitch.

Choosing a Trustworthy Annuity Insurance Company

When shopping for annuities, it's crucial to select a financially sound annuity insurance company. Key factors to evaluate include:

• AM Best Rating: Look for A-rated or higher companies.

• Customer Service Reputation: Reliable service and clear communication matter.

• Variety of Products: More offerings mean more flexibility.

• Stability: Choose providers with a long track record of financial strength.

Examples of trusted insurers offering annuities in Virginia include Nationwide, Lincoln Financial, Prudential, Allianz, and Pacific Life.

Insights on Nationwide Annuities

Nationwide is a major player in the annuity market, offering a wide variety of fixed, indexed, and variable contracts. Highlights of their annuities include:

• Income Riders: Customizable options for guaranteed lifetime withdrawals.

• Market Participation: Especially in variable and indexed annuities.

• Brand Reputation: Over 90 years in the insurance and investment business.

• Advisor-Friendly Platforms: Products designed for both commission and fee-only advisors.

Nationwide annuities are especially appealing for those who want broad investment access and reliable income streams in retirement.

FINAL THOUGHTS

Buying a variable annuity in Virginia requires a thoughtful approach, clear financial goals, and guidance from a licensed professional. Whether you're investing $50,000 or $300,000, variable annuities offer the potential for market growth, income security through optional riders, and tax-deferred earnings.

With reputable companies like Nationwide offering transparent, client-focused annuity products, Virginia residents have access to tools that can help secure retirement income while still participating in market gains.

Alpha Book Publisher encourages individuals to work with credentialed advisors or brokers who prioritize transparency and personalized planning. A variable annuity isn’t right for everyone, but for many, it can play a valuable role in a broader retirement income strategy.