Which of the following is TRUE regarding the annuity period?

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Which of the following is TRUE regarding the annuity period?

A. It may last for the lifetime of the annuitant.

B. During this period of time the annuity payments grow interest tax deferred.

C. It is also referred to as the accumulation period.

D. It is the period of time during which the annuitant makes premium payments into the annuity.

Answer: A. It may last for the lifetime of the annuitant.

Life Insurance

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An insured's building has an actual cash value of $200,000, and he has insured the property for $120,000 with an 80% coinsurance clause. A $40,000 loss occurs. How much will the policy pay?

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