A Combined Annuity is described as being balanced and combines features of fixed and variable annuities. Which term describes this product?

A Combined Annuity is described as being balanced and combines features of fixed and variable annuities. Which term describes this product?

• A. Fixed Annuity
• B. Variable Annuity
• C. Indexed Annuity
• D. Combined Annuity

Answer: (D)

A product that blends guarantees with growth potential is a combined or hybrid annuity. The description calling it balanced and combining features of fixed and variable annuities fits this term, since it aims to offer the safety of a fixed contract along with the upside of a variable one. A fixed annuity is all about guaranteed payments with no market risk, so it wouldn’t reflect any growth potential. A variable annuity emphasizes investment risk and potential higher returns but doesn’t guarantee principal or income. An indexed annuity ties returns to a market index with guarantees, but it’s typically still considered a fixed-type product with indexed crediting rather than a true blend of fixed and variable features.

A product that blends guarantees with growth potential is a combined or hybrid annuity. The description calling it balanced and combining features of fixed and variable annuities fits this term, since it aims to offer the safety of a fixed contract along with the upside of a variable one. A fixed annuity is all about guaranteed payments with no market risk, so it wouldn’t reflect any growth potential. A variable annuity emphasizes investment risk and potential higher returns but doesn’t guarantee principal or income. An indexed annuity ties returns to a market index with guarantees, but it’s typically still considered a fixed-type product with indexed crediting rather than a true blend of fixed and variable features.