What Is an Annuity

Multiple Choice

What is an annuity?

A) A fixed sum to be paid at regular intervals to an insurance policyholder for either a certain or indefinite period
B) The cash reserve that increases each year an insurance policy remains in force as a minimum savings feature
C) An annual sum that the insured pays to an insurance company as consideration for the insurance contract
D) An alternative that a party to an insurance contract agrees to follow to discharge the agreement