Final answer:
Annuities are periodic payments that provide a steady stream of income in retirement. They are usually purchased through fixed, level funding payments sold by life insurance agents. However, annuitants cannot pay the annuity premiums in lump sums. Hence, option (D) is correct.
Step-by-step explanation:
All of the statements regarding annuities are correct except for the statement that annuitants can pay the annuity premiums in lump sums. An annuity is a financial product that provides a series of periodic payments to the annuitant, usually in retirement. Annuity premiums are usually paid over a period, and the total premium amount is spread out over time.
It is not common for annuities to be funded by a single lump-sum payment. Instead, annuitants make regular contributions or payments over the accumulation phase, and the annuity payments begin during the distribution phase. Generally, annuity contracts issued today require fixed, level funding payments and they are often sold by life insurance agents.