Question

A single life annuity pays you a set monthly payment for the rest of your life even if you live to a very old age.

	True
	False

Answer 1

Ans TRUE

Annuity is a guaranteed payment made over a time in consideration of amount paid earlier. Annuity can be paid periodically which depends on the type of plan. Annuity plans provide amounts upto the life of a single person or can also provide the amount to the spouse or the children of the person which depends on the plan. Single life annuity provides amount only till the life of the single person.