New Variable Annuity Balances Stocks' Profits and Bonds' Safety [Video]

After getting hammered by the financial crisis and its aftermath, many investors scrambled for the perceived the safety of bonds. In the wake of the staggering drop taken by the stock market as the recession accelerated, the steady stream of income provided by bonds made them particularly attractive to those approaching retirement.

But while many wrote it off during the recession, the stock market has turned in a stunning rally since hitting bottom in early 2009. And that has left many investors looking for ways to participate in stocks' future upside while continuing to run conservative portfolios.

A new variable annuity product launched by insurance company Western & Southern Financial Group could be appealing to these cautious investors. Mark Caner, president of W&S Financial Group Distributors, gave DailyFinance an overview of the product.

Some have questioned the value of variable annuities for investors, especially when fees run high. But exposure to gains in the stock market, which impact the future income stream of the product, and a cost advantage compared to similar products offered in mutual fund formats, are part of this product's appeal.