Types of Policies
What key feature distinguishes a variable annuity from a fixed annuity?
Answer and explanation
Answer: A. Variable annuities invest in separate account subaccounts where value fluctuates with market performance, placing investment risk on the owner.Source: SEC Investor Bulletin — Variable Annuities — PDF page 2, Separate Accounts
More types of policies questions
- How does the death benefit of an increasing term rider or policy change over time?
- How does the premium for a joint life (first-to-die) policy compare to buying two separate individual policies of the same face amount?
- How is interest credited to cash values in an interest-sensitive whole life policy?
- How is single-premium whole life ordinarily funded?
- How is the payout phase (annuitization) structured under a straight life income annuity settlement option?
- If current interest rates exceed expectations in an interest-sensitive whole life policy, what options may the insurer offer the owner?
590 Texas questions like this one.
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