SIE practice questionmediumVariable Annuities - Features
Which feature differentiates a variable annuity’s payout phase from its accumulation phase?
- APayouts may last for life or a fixed period✓ Correct answer
- BTax-deferred growth
- CMultiple investment choices
- DInsurance company guarantees
Explanation
Why A — Payouts may last for life or a fixed period
During the payout phase, the contract begins paying periodic payments to the annuitant, either for life or a set period. B and C can apply during accumulation; D exists in both phases.
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