SIE practice questionmediumVariable Annuities
A client is considering a variable annuity mainly to control investment options. Which feature aligns with this goal?
- APrincipal protection by the FDIC
- BA guaranteed minimum interest rate
- CAbility to allocate assets among various subaccounts✓ Correct answer
- DImmediate access to accumulated funds at all times
Explanation
Why C — Ability to allocate assets among various subaccounts
A is correct; variable annuities allow owners to choose among different investment options. B is a feature of fixed annuities. C is incorrect as variable annuities are not FDIC-insured. D does not reflect annuity contracts.
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