Which of the following statements is (are)true about a longevity annuity?
I.Longevity annuities are low-cost because there are usually no cash values or death benefits in the policy.
II.Longevity insurance is an example of an immediate annuity.

Question

Quizplus · Accepted Answer

Statement I is true since longevity annuities typically only pay out if the policyholder lives past a certain age, and thus do not have cash values or death benefits. Statement II is false since longevity annuities are not the same as immediate annuities, which begin paying out immediately after purchase.

Which of the Following Statements Is (Are)true About a Longevity