Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which type of annuity pays benefits based on units rather than specific dollar amounts?

Fixed annuity
Immediate annuity
Variable annuity
Indexed annuity

The correct answer is: Variable annuity

Variable annuities pay benefits based on units rather than specific dollar amounts. This is different from fixed and indexed annuities, which have predetermined payout amounts. An immediate annuity is a type of fixed or variable annuity that starts paying out immediately after the initial investment, but the payout is still based on specified dollar amounts. Therefore, option C is the correct answer for this question.