New York State Life Insurance Exam Questions Practice Question
Which type of annuity guarantees a level benefit payment?
Correct Answer: D
Rationale: A fixed annuity guarantees a level benefit payment, providing stability and predictability for the recipient. This type of annuity ensures that the payout remains constant throughout its term, making it an ideal choice for those seeking consistent income.
In contrast, a variable annuity (A) offers payments that can fluctuate based on investment performance, leading to potential uncertainty in income. A universal annuity (B) typically refers to flexible premium payments and does not guarantee fixed payouts. Lastly, a limited life annuity (C) pays benefits for a predetermined period, which can vary in amount and does not guarantee level payments.
Unlock All Questions
Subscribe to Premium for full access to all practice questions, detailed rationales, and performance tracking.
Subscribe Now