Which of the following statements is (are)true with regard to the inflation-indexed annuity option?
I.The initial monthly payment is lower than the initial payment a fixed annuity would have provided if purchased at the same age.
II.Periodic payments to the annuitant are adjusted for inflation.

Question

Quizplus · Accepted Answer

Inflation-indexed annuities typically start with lower initial payments compared to fixed annuities because they are designed to increase over time with inflation adjustments. Periodic payments are indeed adjusted for inflation to maintain purchasing power.

Which of the Following Statements Is (Are)true with Regard to the Inflation-Indexed