2. Sara purchased a $100,000 fixed deferred annuity,
naming her mother, Emily, as the annuitant and her sisters, Jana
and Bonnie, as co-beneficiaries. Who derives the benefit of the
contract's tax-deferred treatment?
(Search Chapter 1)
Answer is option A
A. Sara
In a deferred annuity contract, the promised made by the insurance company to purchaser of deferred annuity to pay a regular income, or a lump sum, at some future date. Thus, the purchaser derives the benefit of the contract's tax-deferred treatment.
2. Sara purchased a $100,000 fixed deferred annuity, naming her mother, Emily, as the annuitant and...