Author Question: Which of the following statements about variable annuities is true? A) The periodic payments ... (Read 141 times)

mikaylakyoung · **on:** Jul 11, 2018

Which of the following statements about variable annuities is true?

A) The periodic payments received by the annuitant are fixed.
B) Variable annuities typically provide a guaranteed death benefit payable to a beneficiary if the annuitant dies prior to retirement.
C) Insurers offering variable annuities are not permitted to charge administrative fees.
D) Although the value of annuity units fluctuates, accumulation units have a fixed value.

Question 2

Which of the following statements is (are) true with respect to an equity-indexed annuity?

I. The maximum percentage gain is usually capped.
II. There is no downside protection against loss of principal if the annuity is held to term.
A) I only
B) II only
C) both I and II
D) neither I nor II