To the annuity holder, annuity payments are:

	A.	Fully includable in gross income.
	B.	Similar to life insurance proceeds in that they are excluded from gross income.
	C.	First considered to be a tax-free return of the original purchase price.
	D.	In part a return of the original purchase price and in part taxable income.
	E.	Revised any time the life expectancy of the annuitant changes.