During the annuity period, after annuitization, which statement is true about annuity units?

During the annuity period, after annuitization, which statement is true about annuity units?

• A. The number of annuity units can change with market conditions
• B. The number of annuity units is fixed once chosen
• C. The value of each unit is fixed forever
• D. Payments are not influenced by the number of units

Answer: (B)

After you annuitize, the amount you’ll receive in payments is determined by a fixed number of annuity units you convert the cumulative value into. That count stays the same for the remainder of the payout period, even as market movements cause the value of each unit to rise or fall. So payments can vary because the unit value changes, but the number of units you hold does not. In other words, the number of annuity units is fixed once chosen, while the value of each unit can fluctuate with market performance, and payments depend on both factors.

After you annuitize, the amount you’ll receive in payments is determined by a fixed number of annuity units you convert the cumulative value into. That count stays the same for the remainder of the payout period, even as market movements cause the value of each unit to rise or fall. So payments can vary because the unit value changes, but the number of units you hold does not. In other words, the number of annuity units is fixed once chosen, while the value of each unit can fluctuate with market performance, and payments depend on both factors.