Question

What is the primary purpose of an annuity in the context of retirement planning?

a.

To provide a lump sum payment at retirement

b.

To protect against outliving one's income in retirement

c.

To offer high-risk investment opportunities

d.

To provide short-term financial assistance

Posted under IC38 Life Insurance Agent Exam

Answer: (b).To protect against outliving one's income in retirement Explanation:The primary purpose of an annuity in the context of retirement planning is to protect against outliving one's income by providing periodic payments that can last for life.

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Q. What is the primary purpose of an annuity in the context of retirement planning?
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