Question

What is an Immediate Annuity?

a.

An annuity where payments are postponed for a given period

b.

An annuity where level payments are made until the survival of the policyholder in return for a single advance payment

c.

An annuity where payments are made only after the death of the policyholder

d.

An annuity where payments are made in arrears

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).An annuity where level payments are made until the survival of the policyholder in return for a single advance payment Explanation:An Immediate Annuity is a contract where level payments are made until the survival of the policyholder in return for a single advance payment.

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