27. Which of the following statements is/are TRUE regarding an annuity? (2 point

Question

27. Which of the following statements is/are TRUE regarding an annuity? (2 points) CIRCLE ALL THAT APPLY. a. b. c. The insurance A policyholder may pay for an annuity with a single payment up-front or with a stream of payments over time. The insurance company is obligated to pay the policyholder a fixed amount per year for as long as the policyholder is alive according to the terms of the policy. company determines the amount that a policyholder must pay for an annuity of a particular size using actuarial tables that predict life expectancies An annuity is an insurance product that will help the policyholder if that person lives longer than the person had expected. d.

Explanation / Answer

The true statements are (A),(B),(C)

As a policyholder can pay for an annuity with a single payment up-front or with a stream of payments over-time. And an annuity is one where insurance company is obligated to pay the policyholder a fixed amount per year for as long as the policyholder is alive according to the terms of the policy. And the insurance company determines the amount a policyholder must pay for an annuity of a particular size using actuarial tables that predict life expectancies.

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