Annuities can be purchased through the following methods EXCEPT:
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A. B. C. D.D
An annuity is a financial product that pays out a fixed stream of payments to an individual over a defined period of time. An annuity can be purchased in several ways, including:
A. Single payment deferred: This method involves a single lump-sum payment made by the purchaser, with the annuity payments starting at a later date, usually at retirement age. The period between the purchase and the start of the annuity payments is known as the deferred period.
B. Periodic payment deferred: This method involves a series of payments made by the purchaser, with the annuity payments starting at a later date, usually at retirement age. The period between the purchase and the start of the annuity payments is known as the deferred period.
C. Immediate payment: This method involves a single lump-sum payment made by the purchaser, with the annuity payments starting immediately, usually within one payment period.
D. Single payment accrued: This method is not a commonly known method for purchasing annuities, and it is not typically offered by financial institutions. It may refer to an option in which the purchaser makes a single payment upfront, and the annuity payments start accruing but are not immediately paid out to the purchaser.
Therefore, the answer to the question is D. Single payment accrued, as this method is not commonly used for purchasing annuities, and it is not typically offered by financial institutions. The other methods listed, A, B, and C, are all common methods for purchasing annuities.