Which of the Following Statements Is Not True of Annuities

question 101

Multiple Choice

Which of the following statements is not true of annuities?

• A) They can provide annual payments for life.
• B) They provide no tax advantages.
• C) They generally have high fees.
• D) You can withdraw your investment as a lump sum.

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Definitions:

Third Restatement

Refers to the updated summaries of common law in the United States, specifically referring to restatements on various legal subjects by the American Law Institute.

Actual Authority

The explicit power granted by a principal to an agent to act on their behalf.

Gratuitous Agent

An individual who acts on behalf of another without receiving any compensation or benefit, motivated by voluntary intent or relationship.

Duty of Loyalty

An obligation of an individual, such as a director of a company, to act in the best interests of the company or another person, without personal conflict.