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Commerce · Q807

Insurance

Graduate and Post Graduate · Commerce · question 807

Q807

Under Deferred annuity, the time period between its purchase and start of annuity payments is called–

A.
Waiting period
B.
Postponement period
C.
Waiver period
D.
Deferment period
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
A deferred payment annuity allows the investment, known as the premium, to grow both by contributions and interest before payments are initiated. A deferred payment annuity is also known as a "deferred annuity" or a "delayed annuity."