QUESTION 2

1. All annuities are a contract between a purchaser and an insurance company in which the purchaser agrees to make a lump sum payment or series of payments in return for disbursements based on the performance of the Standard and Poors 500 Stock Index, beginning either immediately (within 12 months) or at some future date. Annuity contracts are an effective way for people to gain exposure to the stock market because the annuity payments can only increase over time.

   True

   False