What are the 2 distinct phases of a Deferred Annuity?
A. Waiting & Starting phases
B. Loading & Unloading phases
C. Accumulation & Payout phases
D. Commutation & Continuation phases
Answer: Option C
Solution(By Examveda Team)
Accumulation & Payout phases are the 2 distinct phases of a Deferred Annuity. There are two phases for a deferred annuity: the accumulation or deferral phase in which the customer deposits (or pays premiums) and accumulates money into an account; the distribution or annuitization phase in which the insurance company makes income payments until the death of the annuitants named in the contract.Related Questions on Insurance
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