When a variable annuity contract is annuitized which statements are true
Selecting the Payout on Your Annuity. FACEBOOK Once your contract is annuitized, A variable annuity is a type of annuity that can rise or fall in value based on the performance of its All of the following statements about variable annuities are true EXCEPT: A) a minimum rate of return is guaranteed. B) the rate of return is determined by the underlying portfolio's value. C) such an annuity is designed to combat inflation risk. D) the number of annuity units becomes fixed when the contract is annuitized The variable annuity is an example of a deferred annuity that invests in the stock market. 7. True or False: All annuities are market-based investments. ANSWER: False. Fixed and indexed annuities earn a declared rate of interest set by an insurance company, whereas variable annuities are market-based investments. 8.