SIE practice questioneasyVariable Annuities
A variable annuity differs from a fixed annuity because its value is primarily based on:
- AFDIC insurance protection
- BA fixed interest rate set by the insurance company
- CGovernment guarantees
- DThe performance of the chosen investment subaccounts✓ Correct answer
Explanation
Why D — The performance of the chosen investment subaccounts
A variable annuity's value is tied to the performance of the selected investment subaccounts. Fixed annuities credit a stated rate, and variable annuities are not FDIC-insured or government-guaranteed.
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