The variable annuity:
A) pays a fixed dollar amount for a variable length of time
B) pays an annuity to a variable number of people
C) overcomes the problem of inflation and the loss of purchasing power
D) accepts variable amounts of deposits on a periodic basis during the accumulation period

Question

Quizplus · Accepted Answer

Variable annuities are designed to help counteract the effects of inflation on investment returns by allowing the investment portion to grow through various market-linked investment options, thus potentially overcoming the problem of inflation and the loss of purchasing power over time.

The Variable Annuity