Which of the following is false regarding the annuity contract?
A)at the beginning of the accumulation phase, the annuitant irrevocably selects the distribution method for the liquidation phase
B)there is considerable flexibility in choosing the length of the accumulation phase
C)the liquidation period is a function of several factors including when the annuitant dies
D)generally, a longer accumulation period results in higher liquidation payments (all other things being equal)

Question

Quizplus · Accepted Answer

The annuitant does not irrevocably select the distribution method at the beginning of the accumulation phase. The annuitant can often change the distribution method during the accumulation phase.

Which of the Following Is False Regarding the Annuity Contract