Q804
What are the types of Annuities?
A.
Immediate Annuity
B.
Deferred Annuity
C.
Both A & B
AnswerD.
None of the three
Answer: Option C
Solution
Answer: Option C
Solution:
Immediate Annuity and Deferred Annuity are the types of Annuities. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash.
A deferred annuity is an insurance contract designed for long-term savings. Unlike an immediate annuity, which starts annual or monthly payments almost immediately, investors can delay payments from a deferred annuity indefinitely. During that time, any earnings in the account are tax-deferred.