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

Question

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

Answer 1

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

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

Fixed annuities provide a guaranteed return and are not linked to the performance of a separate account, which is characteristic of variable annuities instead.