Annuity belongs to

The correct answer is: C. Both A & B

An annuity is a contract between an investor and an insurance company. The investor agrees to make a series of payments to the insurance company, and the insurance company agrees to make a series of payments to the investor, usually starting after a certain period of time.

There are two main types of annuities: fixed annuities and variable annuities.

• Fixed annuities guarantee a certain amount of income for the life of the annuitant (the person receiving the payments). The amount of the payments is based on the amount of money the investor has paid into the annuity, the interest rate the insurance company guarantees, and the annuitant’s age.
• Variable annuities do not guarantee a certain amount of income. Instead, the amount of the payments is based on the performance of the investments inside the annuity. This means that the payments could be higher or lower than the payments from a fixed annuity.

Annuities can be a good way to provide income in retirement. They can also be used to provide a death benefit to beneficiaries.

Here is a brief explanation of each option:

• A. One where the annuity amount is fixed (guaranteed): This is a fixed annuity. The amount of the payments is guaranteed by the insurance company.
• B. One where the annuity amount is variable (linked to investment performance): This is a variable annuity. The amount of the payments is not guaranteed by the insurance company. Instead, it is based on the performance of the investments inside the annuity.
• C. Both A & B. This is the correct answer. Annuities can be either fixed or variable.
• D. None of the above. This is not the correct answer. Annuities can be either fixed or variable.