How do benefit payments fluctuate over time in a variable life annuity?

In a variable life annuity, benefit payments are tied to the performance of investment options chosen by the annuity owner, which are held in a separate account. This means that as the market value of the underlying assets fluctuates—reflecting gains or losses in investments—so too do the benefit payments received by the annuitant. If the investments perform well, the benefit payments may increase, thereby providing greater income to the annuitant. Conversely, if the investments perform poorly, the benefit payments may decrease. This linkage to investment performance is a defining characteristic of variable life annuities as opposed to fixed products, where benefit payments remain constant regardless of market conditions. Therefore, the correct understanding is that the variability in payment amounts directly mirrors the changes in the market value of the associated assets in the separate account.