Liquidation period refers to

A. Time taken to build up a corpus

B. Period during which Annuity payments are made by the insurer

C. Insolvency period

D. Time between purchase of annuity and start of payment of annuity payments by the insurer

Answer: Option B

Solution(By Examveda Team)

Liquidation period refers to Period during which Annuity payments are made by the insurer. Liquidation period is time frame during which an annuitant receives income payments from the insurance company, usually on a monthly basis. The obligations of the company to the annuitant during the liquidation period depend on whether it is a pure or refund annuity.