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What is considered to be a characteristic of an immediate annuity


An immediate annuity is the most basic type of annuity. You make one lump-sum contribution. It's converted into an ongoing, guaranteed stream of income for a specified period of time (as few as five years) or for a lifetime. Withdrawals may begin within a year.

Which of the following is a characteristic of an annuity?

An annuity has the following characteristics:\n\n Payments will be made at a fixed interval during a given period. Payments amount is usually constant. An annuity can also be received right after an immediate purchase. However, there are usually 2 phases of an annuity: accumulation and distribution.

What are immediate annuities?

Immediate annuity\n\n This allows you to convert a lump sum of money into an annuity so that you can immediately receive income. Payments generally start about a month after you purchase the annuity. This type of annuity offers financial security in the form of income payments for the rest of your life.

What is annuity and its characteristics?

Annuities are financial products intended to enhance retirement security. An annuity is an agreement for one person or organization to pay another a series of payments. Usually the term annuity relates to a contract between an individual and a life insurance company.

What are the three characteristics of an annuity?

Variable Annuities\n\n However, a typical variable annuity offers three basic features not commonly found in mutual funds: tax-deferred treatment of earnings; a death benefit; and. annuity payout options that can provide guaranteed income for life.




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