Q805
Under Immediate annuity, the premium has to be paid
A.
In regular instalments
B.
In lumpsum
AnswerC.
Both A & B
D.
None of the above
Answer: Option B
Solution
Answer: Option B
Solution:
Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.