Which of the following is NOT characteristic of a fixed annuity?

Question

1. A guarantee of principal
2. Cash value growth dependent upon the performance of a separate account
3. A minimum interest guarantee
4. Crediting of a current interest rate

Answer 1

The characteristic that is NOT associated with a fixed annuity is:

2. Cash value growth dependent upon the performance of a separate account.

Fixed annuities provide a guaranteed return and do not rely on the performance of separate investment accounts, which is more characteristic of variable annuities.