In an Annuity, the Risk of Dying Too Soon Is

question 31

True/False

In an annuity, the risk of dying too soon is transferred to the insurer.

---

Definitions:

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns, encompassing a variety of assets including stocks, bonds, and real estate.

ROA

Return on Assets, a profitability ratio that measures how efficiently a company can manage its assets to produce profit during a period.

Effective Utilization

Effective utilization refers to how efficiently resources, such as labor and equipment, are used to produce goods or services.

EBIT

Earnings before interest and taxes; a measure of a company's profitability that excludes interest and income tax expenses.