QUESTIONS AND ANSWERS
Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is
this annuity in?
A. Payout period
B. Accumulation period
C. Deferred period
D. Growth period - ANS Accumulation period
Maria would like an annuity that provides a guaranteed accumulation or payout. The type of
annuity she is seeking is called?
variable payout
fixed accumulation
interest guaranteed
annuity certain - ANS Annuity certain
An annuity is primarily used to provide?
A. retirement income
B. disability income
C. long-term care benefits
D. death benefits - ANS retirement income
What is the primary reason for buying an annuity?
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