What option typically cannot be associated with a standard annuity contract?

In the context of standard annuity contracts, the characteristic that typically cannot be associated with them is the absence of penalties for early withdrawals. Annuities are designed primarily to provide a steady stream of income, often for retirement. When a policyholder chooses to withdraw funds early, it undermines the structure and purpose of the contract. Therefore, standard annuities often come with surrender charges or penalties that apply if funds are withdrawn before a specified period, known as the surrender period.

On the other hand, withdrawal flexibility, guaranteed income for life, and fixed market rate returns are features that can be commonly associated with annuities. Withdrawal flexibility can be built into certain types of annuities, allowing policyholders to withdraw a portion of their investment under specific conditions. Guaranteed income for life is a core principle of many annuity products, providing financial security. Lastly, some annuities indeed offer fixed returns linked to market rates, providing predictable income streams. These features support the objective of providing retirement income, making the absence of penalties for early withdrawals stand out as an atypical feature in standard annuity contracts.