Multiple choice

A type of annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them is known as:-

  1. Deferred annuity

  2. Immediate annuity

  3. Fixed annuity

  4. Variable annuity
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A Correct answer
Explanation

Deferred annuity is an annuity under which the annuity payment period is scheduled to begin at some future date. They enable people to increase their income stream later in life for less money because the insurance company is not on the hook as long when income payments are deferred.

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