Which of the following statements regarding variable annuities is false?

The statement that the annuitant's investment is guaranteed regardless of market performance is false because variable annuities are inherently tied to the performance of the investment options chosen by the annuitant. Unlike fixed annuities, which provide a guaranteed return, variable annuities allow the annuitant to invest in a variety of subaccounts that can include stocks, bonds, and mutual funds. The value of the annuity can fluctuate based on the performance of those investments, meaning that the annuitant bears the market risk.

In contrast, the ability of the annuitant to choose investment options reflects one of the defining characteristics of variable annuities, allowing them to potentially benefit from higher returns depending on their investment choices. Moreover, the variable nature of the benefits means that payouts can vary based on the performance of the selected investments, which directly ties back to the market risk that the annuitant assumes. Therefore, the guarantees present in other types of annuities do not apply here, reinforcing that the annuitant cannot expect a guaranteed investment return with variable annuities.