Question

An annuitized account in a variable annuity is most similar to: A a mutual fund B a whole life insurance unit C pension payments D an individual retirement account

Answer 1

The correct answer is (c)

Step-by-step explanation:

An Annuitized account is similar to a pension fund because this account grows and provides long-term income. There are two ways to grow the annuitized account, firstly by putting more money in the account which is the fastest way to grow the account and second way is to wait for the interest to compound. Both the pension account and annuitized account helps to generate long term income.