Question

All of the following are true regarding annuities, except: A They are similar to life insurance B They are designed to protect against outliving one's income C They can liquidate an estate D They are used primarily to provide a steady stream of income

Answer 1

Answer:They can liquidate an estate.

Explanation: Annuities are contracts between a person and an insurance company following a future endeavors,the future endeavors can include lifetime income,future projects etc. Annuities are contracts which have been around for a long time now,they are similar to life insurance. Annuities can not liquidate estates,they are protected against outliving a person's income.

Annuities became very popular during the great depression in the United States of America,when the value of stocks dropped drastically.