The definition of an annuity is:
A)similar to the definition of a life insurance policy
B)a series of equal cash flows at intervals
C)an investment product whose funds are invested in the stock market
D)Both A and B are correct.

Question

Quizplus · Accepted Answer

An annuity is a financial product that provides a series of equal cash flows at regular intervals, usually monthly, quarterly, or annually. An annuity does not have to be related to life insurance, as it can also be used as a retirement savings tool, investment product, or for other purposes. However, the defining characteristic of an annuity is the periodic payment of a fixed sum over time.

The Definition of an Annuity Is