Final answer:
The statement is False. Variable annuities do not provide a guaranteed rate of return.
Step-by-step explanation:
The statement that a variable annuity provides a guaranteed rate of return is False.
A variable annuity is a type of annuity that offers the potential for variable investment returns based on the performance of the underlying investment options, such as stocks, bonds, or mutual funds. The return on a variable annuity is not guaranteed and can fluctuate.
On the other hand, a fixed annuity is a type of annuity that does provide a guaranteed rate of return. It offers a fixed interest rate set by the insurance company and guarantees a specific income stream during the payout phase.