Massachusetts State Life Insurance Practice Exam 2025 – The Complete All-in-One Guide to Exam Success!

An immediate annuity is designed to start making income payments to the annuitant very soon after the initial investment is made. Typically, these payments begin within a month following the purchase of the annuity contract. This immediate payout feature differentiates it from deferred annuities, which accumulate funds and delay payments until a specified future date.

By starting payments within the first month, immediate annuities cater to individuals who seek to provide immediate income, often benefitting retirees or those needing quick access to cash flow in their financial planning. Thus, this short waiting period to commence payments makes immediate annuities a suitable option for those who require immediate financial support.