New York Insurance Exam Practice Question
Which type of annuity provides payments for a fixed period?
Correct Answer: D
Rationale: A certain annuity provides payments for a predetermined fixed period, ensuring that the recipient receives consistent income during that time.
Immediate annuities begin payments right after the initial investment but do not guarantee a fixed term. Fixed annuities offer a stable return on investment but are not specifically tied to a fixed payment period. Variable annuities allow for fluctuating payments based on investment performance, lacking the certainty of fixed duration payments. Thus, only a certain annuity guarantees payments for a defined timeframe, making it the most accurate choice.
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