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Your client is interested in annuitizing his variable annuity contract. All of the following statements you make to your client about annuitization are correct EXCEPT
Your client is interested in annuitizing his variable annuity contract. All of the following statements you make to your client about annuitization are correct EXCEPT
A annuitization is the conversion of the annuity's accumulated funds into a stream of periodic payments guaranteed to last for either one or more lifetimes or a specific time period.
B the annuity owner maintains the right to make withdrawals from the annuity's cash value or to surrender the annuity after the annuity contract is annuitized.
C the annuity owner holds key rights under the contract while the annuitant is living, one of which is the right to choose and change the annuitization date.
D once the contract is annuitized, the decision to receive periodic payments under any type of annuity income option is usually irrevocable.
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