When does an immediate annuity purchased with a single premium typically begin payments?

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Multiple Choice

When does an immediate annuity purchased with a single premium typically begin payments?

Explanation:
An immediate annuity with a single premium is funded with one lump sum and is designed to start paying out soon after funding. In most contract structures, “immediate” means the first payout occurs at the end of the first payment period. If payments are monthly, that means the first check arrives about one month after you pay the premium. It wouldn’t wait until retirement age or set a six‑month delay. This is different from deferred annuities, where payments start at a future date.

An immediate annuity with a single premium is funded with one lump sum and is designed to start paying out soon after funding. In most contract structures, “immediate” means the first payout occurs at the end of the first payment period. If payments are monthly, that means the first check arrives about one month after you pay the premium. It wouldn’t wait until retirement age or set a six‑month delay. This is different from deferred annuities, where payments start at a future date.

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