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Commerce · Q325

Insurance

Graduate and Post Graduate · Commerce · question 325

Q325

What are the two distinct phases of a deferred annuity?

A.
Waiting and Starting phases
B.
Loading and Unloading phases
C.
Accumulation and Payout phases
Answer
D.
Commutation and Continuation phases

Answer: Option C

Solution

Answer: Option C
Solution:
Accumulation and Payout phases are the two distinct phases of a deferred annuity. A deferred payment annuity is an insurance product that provides future payments to the buyer rather than an immediate stream of income.