Is my principal always protected?

Your principal payment is not protected when you purchase a variable annuity, as you are making a commitment to invest in the market for potentially stronger performance. The flip side of this is that you could also experience losses as a result of market performance. Your principal payment is protected when you purchase a fixed or indexed deferred annuity. Be aware, however, that some annuities offer additional benefits, or riders, which you may choose to purchase to ensure additional protection and growth. In some cases, these rider purchases could chip away or deplete the principal payment of the annuity, in the event that the non-guaranteed credited interest is insufficient to cover the costs. Be sure to ask your financial advisor or insurance professional to explain.