Annuities
A contract holder elects to begin receiving income. Which phase has begun?
Answer and explanation
Answer: D. The annuity period, sometimes called the payout or liquidation period, is when the contract pays income to the annuitant. Accumulation precedes it, and the free look and contestable periods run from delivery and issue for different purposes.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, annuity period
More annuities questions
- Why do deferred annuities commonly carry surrender charges in the early years?
- Why might an annuity be used to accumulate funds for education?
- A buyer wants to fund an annuity gradually over working life and take income at retirement. Which design fits?
- A deferred annuity stops building value for future income and begins making scheduled income payments. Which phase has begun?
- A fixed annuity states a minimum rate and a current rate. What is the difference?
- A married couple wants annuity income to continue while either of them lives. Which option fits?
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