Ace the Florida Life & Health Insurance Test 2025 – Dive In and Secure Your Success!

Selecting a fixed annuity is the best choice when the objective is to secure guaranteed fixed payments. A fixed annuity provides a predetermined rate of return and fixed payout amounts for a specified period or for the lifetime of the annuitant, which ensures financial stability and predictability. This type of annuity is ideal for individuals seeking a steady and reliable income stream, particularly during retirement.

In contrast, a variable annuity can fluctuate based on the performance of underlying investments, which introduces a level of risk rather than guaranteeing fixed payments. Deferred annuities focus on accumulating funds before payouts begin, but they can be structured as either fixed or variable. An equity-indexed annuity offers returns linked to a stock market index, which again does not guarantee fixed payments as it depends on market performance.

Choosing a fixed annuity aligns perfectly with the need for guaranteed fixed payments, providing peace of mind regarding consistent income.