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 can change the distribution method during the accumulation phase and is not bound by the selection made at the beginning.

Answer: B, C, D
 B is true as there is flexibility in choosing the length of the accumulation phase. C is true as the duration of the liquidation period is affected by factors such as the annuitant's age and when they pass away. D is true as a longer accumulation period results in more contributions and potentially more growth, leading to higher liquidation payments.

Which of the Following Is false Regarding the Annuity Contract