Which of the following defines an annuity?
A)For a fee,an insurance company provides you with regular income until you die.
B)A surcharge is added to life-insurance premiums paid by persons in dangerous occupations.
C)Annuity is another name for stock funds managed by mutual fund managers.
D)Annuity is another name for any diversified portfolio.

Question

Quizplus · Accepted Answer

An annuity is a financial product that provides a series of regular payments, typically for retirement income. These payments can be guaranteed to last for the rest of the annuitant's life, or for a set number of years. Option A accurately describes an annuity, as it involves an insurance company providing regular income to the annuitant until they die. The other options do not accurately define what an annuity is.

Which of the Following Defines an Annuity