Which of these annuities require premium payments that vary from year to year?

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Multiple Choice

Which of these annuities require premium payments that vary from year to year?

Explanation:
Premium payments variability is the concept being tested. Flexible premium deferred annually allows the owner to change how much is paid each year (and when), within the contract’s rules, so contributions aren’t fixed. This is what makes it the type that requires premium payments to vary from year to year. In contrast, a level premium fixed annually requires the same payment every year; a single premium immediate uses one lump-sum payment at the start; and a fixed annuity with a guaranteed rate describes how interest is credited (the guarantee), not how the premiums are paid.

Premium payments variability is the concept being tested. Flexible premium deferred annually allows the owner to change how much is paid each year (and when), within the contract’s rules, so contributions aren’t fixed. This is what makes it the type that requires premium payments to vary from year to year.

In contrast, a level premium fixed annually requires the same payment every year; a single premium immediate uses one lump-sum payment at the start; and a fixed annuity with a guaranteed rate describes how interest is credited (the guarantee), not how the premiums are paid.

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