Many people are against using a variable annuity or any other annuity for retirement savings. However, when used strictly as a death benefit, the variable annuity deserves a second look.

Like life insurance, an annuity can be used as a death benefit. If you never plan to use some of your funds, the variable annuity can be very attractive. While you will still have morality, separate accounts, and other expenses for the variable annuity, which are generally higher than most mutual funds; generally, you can depend on getting back all of your principal back minus withdraws, as a death benefit. Unfortunately, you will not be around to enjoy this annuity feature.

When used as a death benefit, the variable annuity can take away some of your market fear; especially, if you know that lowest amount your family will receive is your principal minus withdraws. Yet, carefully read any prospectus concerning the variable annuity before using it as death benefit or any other financial strategy. It is also important that you seek advice from an annuity specialist or tax advisor before making any purchase.

*Disclaimer: This article does not constitute financial advice. Always consult a tax advisor or financial advisor when making investment decisions.

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