For a deferred annuity, what is the minimum time before benefit payments may begin after purchase?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $24.99Unlock all

Study for the Louisiana Series 103 – Life, Health, and Accident or Sickness Insurance Exam. Familiarize yourself with key concepts through engaging questions and explanations. Prepare effectively for your exam!

Multiple Choice

For a deferred annuity, what is the minimum time before benefit payments may begin after purchase?

Explanation:
The key idea is that a deferred annuity postpones the first payout to a future date. Immediate annuities start payments within one year of purchase, so to be considered deferring, the first payment must occur after that one-year mark. Therefore, the minimum deferral period before benefits can begin is 12 months. If payments start within the first year, it would be an immediate annuity, not deferred.

The key idea is that a deferred annuity postpones the first payout to a future date. Immediate annuities start payments within one year of purchase, so to be considered deferring, the first payment must occur after that one-year mark. Therefore, the minimum deferral period before benefits can begin is 12 months. If payments start within the first year, it would be an immediate annuity, not deferred.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy