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
Variable annuities allow the owner to allocate assets among subaccounts with different investment objectives. Fixed annuities offer guaranteed rates, while variable annuities are not FDIC-insured and may restrict withdrawals.
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