Text

A A A

$1-10$

$11-20$

$21-30$

$31-40$

With regard to annuities, all of the following statements are true EXCEPT:

a$.$ Earnings on the contract's funds are tax deferred until withdrawn.

b$.$ The contract's death benefit is subject to probate at the owner's death when paid to a named beneficiary.

c$.$ Contract earnings are subject to ordinary income tax when withdrawn.

d$.$ A death benefit is payable if the owner or annuitant dies before the contract is annuitized.