Which of the following statements is (are) true with regard to the inflation 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

The inflation annuity option typically starts with a lower initial payment compared to a fixed annuity because it accounts for future inflation adjustments. Periodic payments are adjusted for inflation to maintain purchasing power.

Which of the Following Statements Is (Are) True with Regard