An immediate life annuity offers all of the following benefits EXCEPT
A) Immediate annuity payments are entirely exempt from federal income tax.
B) Simplicity for the purchaser as he or she does not have to manage investment funds.
C) Security for the purchaser as stable lifetime income that cannot be outlived is provided.
D) The principal is safe as the funds are guaranteed by the assets of the insurer.
Question 2
The fundamental purpose of a variable annuity is to
A) provide funding flexibility to the purchaser.
B) provide a hedge against inflation.
C) fund the purchase of cash value life insurance.
D) guarantee a fixed-dollar benefit throughout retirement.
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