Arkansas Life and Health Insurance Practice Exam 2025 – Complete Study Guide

Question: 1 / 400

Which of the following generally involves periodic payments starting at a specified date for the rest of the annuitant's life?

Deferred Annuity

A deferred annuity involves payments that begin at a future date, not immediately. An immediate annuity, on the other hand, starts periodic payments soon after the contract is purchased, usually within a year. Lump-sum distribution refers to taking the entire amount out at once, which is not periodic payments. Variable annuities involve investment risks and do not guarantee fixed payments for life. Therefore, the correct option is a deferred annuity, where payments start at a specified date for the rest of the annuitant's life.

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Immediate Annuity

Lump-Sum Distribution

Variable Annuity

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