Final answer:
The true statement about Nikki's fixed deferred annuity cannot be determined from the information provided. Annuities typically provide a guaranteed income stream, but how it is received depends on the contract's terms, including whether or not it is adjusted for inflation.
Step-by-step explanation:
Nikki purchased a fixed deferred annuity with a $10,000 premium payment. The contract offers a one-time bonus feature of 4 percent. None of the statements mentioned are automatically true based solely on the information provided. A fixed deferred annuity typically means that Nikki will receive a guaranteed income stream at a later date, but the specifics of whether this is for a fixed period of time, for life, as a lump sum payment after a certain number of years, or as a lump sum payment upon death would depend on the options selected at the purchase or annuitization phase of the contract. It's also important to note that while the annuity income may be guaranteed, it may not be adjusted for inflation over time, which could lead to a loss of buying power in a similar way defined benefits pension plans can lead to a loss of purchasing power for retirees.