Afixed annuityprovides guaranteed features but does not offer protection against inflation. According to Pennsylvania annuity principles, fixed annuities guarantee a minimum rate of return, provide predictable income payments, and allow tax-deferred growth of accumulated funds. These guarantees make fixed annuities attractive for conservative investors seeking stability.

However, fixed annuity payments are typically level and do not adjust for rising costs of living. As inflation increases over time, the purchasing power of fixed payments may decrease. Inflation protection is more commonly associated with variable annuities or annuities that include cost-of-living adjustment riders.

Flexible premiums may be available depending on the type of fixed annuity, such as deferred fixed annuities. Tax-deferred growth and guaranteed interest rates are core features of fixed annuities emphasized in Pennsylvania Life Insurance study materials.

Since inflation protection is not a feature of fixed annuities, option A is the correct and verified answer.