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What is the primary purpose of an annuity?
  • a)
    To provide immediate cash benefits
  • b)
    To secure a steady cash flow during retirement
  • c)
    To offer protection against data breaches
  • d)
    To insure against property damage
Correct answer is option 'B'. Can you explain this answer?
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What is the primary purpose of an annuity?a)To provide immediate cash ...
An annuity's primary purpose is to provide a reliable means of securing a steady cash flow for individuals during their retirement years and to mitigate the risk of outliving one's assets. It is designed to accept and grow funds during the accumulation phase and then pay out a stream of payments during the annuitization phase, ensuring financial security in retirement.
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