Vidyalelo
Commerce · Q809

Insurance

Graduate and Post Graduate · Commerce · question 809

Q809

Which type of Annuity will have 2 distinct phases?

A.
Immediate Annuity
B.
Deferred Annuity
Answer
C.
Spouse Annuity
D.
Joint life annuity

Answer: Option B

Solution

Answer: Option B
Solution:
There are two phases for a deferred annuity: the accumulation or deferral phase in which the customer deposits (or pays premiums) and accumulates money into an account; the distribution or annuitization phase in which the insurance company makes income payments until the death of the annuitants named in the contract.