Which of the following annuities typically has a risk associated with market performance?

Indexed annuities are linked to a specific market index, such as the S&P 500, which means their returns can fluctuate based on the performance of that index. This connection to market performance exposes the investor to potential gains when the index performs well, but there could also be limitations or cap structures on the maximum returns. While indexed annuities often include a guaranteed minimum return, the variable portion tied to the market index introduces a risk component that is not present in fixed annuities.

Fixed annuities, in contrast, offer a predetermined interest rate that does not change based on market conditions, providing stability and predictability. Immediate and deferred annuities can also come in various forms, with some being fixed, but they do not inherently have a direct link to market performance like indexed annuities do. This makes indexed annuities unique among the options presented in terms of market risk.