Florida Life and Health Insurance License Practice Test 2026 - Free Insurance Practice Questions and Study Guide

Question: 1 / 400

Which type of annuity pays benefits based on units rather than specific dollar amounts?

Fixed annuity

Immediate annuity

Variable annuity

Variable annuities pay benefits based on units rather than specific dollar amounts. This is different from fixed and indexed annuities, which have predetermined payout amounts. An immediate annuity is a type of fixed or variable annuity that starts paying out immediately after the initial investment, but the payout is still based on specified dollar amounts. Therefore, option C is the correct answer for this question.

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Indexed annuity

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