Which of the following is NOT a main type of annuity?

The designation of commercial annuity as not being one of the main types of annuities is accurate because it does not classify as a type of annuity in the conventional sense. Instead, commercial annuity refers to the general market or industry in which annuities are sold or issued, rather than a specific structure or function of the annuity itself.

In contrast, fixed annuities provide a guaranteed payout, typically at a fixed interest rate, offering security for conservative investors. Variable annuities, on the other hand, allow the investor to allocate funds to various investment options, resulting in fluctuating payouts based on market performance, which suits individuals seeking growth potential. Indexed annuities combine elements of both fixed and variable annuities, linking returns to a specific equity index while providing a minimum guaranteed return. Each of these types plays a specific role in serving the diverse needs of investors and retirement planners.

Understanding these distinctions is crucial for matching annuity products to individual financial goals and risk tolerance, highlighting why commercial annuity does not fit into the categories of specific annuity types.