New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    The conversion of the account balance of a deferred

    annuity contract to income payments is termed as?
    A Affinity sales Correct Answer Incorrect Answer
    B Pure Risk Correct Answer Incorrect Answer
    C Annuitization Correct Answer Incorrect Answer
    D Proximate Clause Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Annuitization is the process of converting an annuity investment into a series of periodic income payments. Annuities may be annuitized for a specific period or for the life of the annuitant. Annuity payments may only be made to the annuitant or to the annuitant and a surviving spouse in a joint life arrangement. Annuitants can arrange for beneficiaries to receive a portion of the annuity balance upon their death.

    Practice Next