Which of the following statements concerning annuities is (are) correct?

1. A flexible premium annuity allows the insured the option to vary premium deposits; whereas, an annuity purchased with a single lump sum is known as a single premium annuity.

2. An immediate annuity is one whose first payment is due one payment interval from its purchase date; whereas, a deferred annuity provides income at some date in the future.

a. 1 only.

b. 2 only.

c. Both 1 and 2.

d. Neither 1 nor 2.