Which One of the Following Statements Concerning Annuities Offered by Insurers

question 3

Multiple Choice

Which one of the following statements concerning annuities offered by insurers is not true?

• A)Interest on annuities is not taxed until the investor receives the payments.
• B)Annuity payments may be fixed or variable.
• C)Annuity contributions are not capped by the IRS.
• D)Annuities can be deferred or immediate.
• E)Annuity payments must cease upon the policyholder's death.

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Definitions:

Incentives

Factors or stimuli that motivate or encourage individuals or entities to act in a certain way, often aimed at achieving a specific outcome or behavior.

Community

A group of people living in the same place or having a particular characteristic in common, or the feeling of fellowship with others due to shared attitudes, interests, and goals.

Moderate Temperatures

Climatic conditions that are not too extreme, either hot or cold, often considered comfortable for human beings.

Economic Concept

A theory or principle that forms the basis of economic reasoning and decision making.