Final answer:
A deferred annuity indeed does not start to pay out until after a specified period, typically three or more periods, which makes the original statement true. It is designed to provide income during retirement rather than right away.
Step-by-step explanation:
A deferred annuity is an annuity contract that delays payments of income, installments, or a lump sum until the investor elects to receive them.
This statement is true; a deferred annuity does not begin to produce rents until a specified number of periods, typically three or more, have expired. The purpose of a deferred annuity is to provide income later in life, such as during retirement, rather than immediately.