What is an annuity?
A)A fixed sum to be paid at regular intervals to an insurance policyholder for either a certain or indefinite period
B)The cash reserve that increases each year an insurance policy remains in force as a minimum savings feature
C)An annual sum that the insured pays to an insurance company as consideration for the insurance contract
D)An alternative that a party to an insurance contract agrees to follow to discharge the agreement

Question

Quizplus · Accepted Answer

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees. It is a contract between an individual and an insurance company where the individual pays a lump sum or series of payments and, in return, receives regular disbursements, beginning either immediately or at some point in the future.

What Is an Annuity