Annuities
What characterizes a single premium immediate annuity?
Answer and explanation
Answer: A. A single premium immediate annuity is bought with one payment and starts paying income within roughly one payment interval, commonly within a year. A deferral after a single payment describes a single premium deferred annuity, and a series of payments describes a flexible premium contract.Source: PSI — New York DFS Insurance Candidate Information Bulletin — Outline, single premium immediate annuities
More annuities questions
- An annuity owner dies during the accumulation period. What ordinarily happens?
- During which annuity phase does the contract value grow before scheduled income payments begin?
- How are accumulation units converted in a variable annuity when the contract owner chooses to annuitize?
- How does a fixed indexed annuity credit interest?
- In an annuity contract, whose life measures the income payments?
- The index referenced by a fixed indexed annuity falls sharply in a year. What ordinarily happens to the contract value?
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