SIE practice questioneasyVariable Annuities
Variable annuities differ from mutual funds in that:
- AThey provide insurance benefits, such as death benefit guarantees✓ Correct answer
- BThey can only be purchased in retirement accounts
- CThey are always passively managed
- DThey are not regulated by the SEC
Explanation
Why A — They provide insurance benefits, such as death benefit guarantees
Variable annuities include insurance features, such as death benefits, which mutual funds do not. B and C are incorrect; D is false, as variable annuities are regulated by the SEC.
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