SIE - Securities Industry Essentials Exam
Preview Mode
Variable annuity payments increase or decrease based on the performance of the underlying investments in relation to a benchmark. This benchmark is known as the
AIR
A
Yield
B
MBS
C
Cash Value
D
Explanations
The variable annuity's interest rate is known as the AIR (assumed interest rate). If performance is below the AIR, payments will decrease. If performance exceeds the AIR, the payments will increase.