Which type of account allows for variable returns based on investment performance?

The type of account that allows for variable returns based on investment performance is the separate account. Separate accounts are commonly used in the context of variable annuities or investment products where the client’s funds are allocated into distinct portfolios that can vary in return based on market performance. The returns on these accounts are not guaranteed and can fluctuate, reflecting the underlying investments chosen by the policyholder or investor.

In contrast, general accounts typically offer more stable, guaranteed returns that are not influenced by market performance, making them less flexible in terms of potential growth. Fixed accounts provide a predetermined interest rate and guarantee a minimum return, thus lacking variability. Retirement accounts can also include various investment options, but they do not specifically denote a structure for variable returns based solely on investment performance like separate accounts do.