Insurance - Study Mode
[#581] What are the types of Annuities?
Correct Answer
(C) Both A & B
Explanation
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.
[#582] Under Immediate annuity, the premium has to be paid
Correct Answer
(B) In lumpsum
Explanation
Solution: Under Immediate annuity, the premium has to be paid in lumpsum. An immediate annuity is an insurance product that gives the buyer a guaranteed stream of income in exchange for a lump sum of cash. Immediate annuities have several advantages, such as long-term stability, tax-deferred income, and monthly income payments for the rest of your life.
[#583] Under Deferred annuity, the premium has to be paid –
Correct Answer
(C) Both A & B
Explanation
Solution: These annuities may be purchased with a single payment or, as is more often the case, with a series of periodic payments.
[#584] Under Deferred annuity, the time period between its purchase and start of annuity payments is called–
Correct Answer
(D) Deferment period
Explanation
Solution: A deferred payment annuity allows the investment, known as the premium, to grow both by contributions and interest before payments are initiated. A deferred payment annuity is also known as a "deferred annuity" or a "delayed annuity."
[#585] Which one of the following statement is correct?
Correct Answer
(B) Every Pension is an Annuity
Explanation
Solution: Every Pension is an Annuity. Pension scheme gives an opportunity to invest and accumulate savings and get lump sum amount as regular income through annuity plan on retirement.