Answer:
An example of an Annuity is<u> A lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time.</u>
Explanation:
An annuity works by transferring risk from the owner, called the annuitant, to the insurance company. Like other types of insurance, you pay the annuity company premiums to bear this risk.
Premiums can be a lump-sum payment made to a life insurance company that promises to make a series of equal payments later for some period of time.
An annuity is a way to supplement your income in retirement. For some people, an annuity is a good option because it can provide regular payments, tax benefits and a potential death benefit but there are risks involved too.
it is possible to lose money, including your principal with a variable annuity if the investments in your account don't perform well. Variable annuities also tend to have higher fees increasing the chances of losing money.
There are four main types of annuities:
- Immediate annuities.
- Deferred income annuities.
- Fixed annuities.
- Variable annuities
