To understand and choose the best variable annuities you should first be knowledgeable about variable annuities. A variable annuity may be defined in simple terms as a contract between the insurance company and the insurer (yourself). This contract is based on an agreement by the insurance company to make monthly payments to you; these payments can begin immediately or at a future date. The contract is purchased by the payment of a lump sum amount or through a series of payments. Variable annuities offer the investor a range of investment choices and the value of your investment will depend on the investment options you choose. Visit annuity investments for more info.