GK
INSURANCE AWARENESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A period of up to one month during which the purchaser of an annuity can cancel the contract without penalty is known as ____
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Lock Period
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Annuitization
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Free Lock Period
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Demutualization
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Explanation:
Detailed explanation-1: -Term Deferred Annuities A term deferred annuity is one that eventually turns your balance into a set number of payments, like over five years or 20 years. If you die during the term, the payments continue to your heirs. Once the term ends, though, the payments stop, even if you’re still alive.
Detailed explanation-2: -2. Annuitization. The second phase, then, is the annuitization period. As discussed above, the process of annuitization is the means through which an annuity is converted from and investment into periodic income payments.
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