Question

Which of the following is an example of annuity contingent ?

• A. Car Loan
• B. House Loan
• C. Daughter's Marriage
• D. All of the above

Answer 1

The correct option is C Daughter's Marriage

$\Rightarrow$ $Daughte{r}^{\prime }sMarriage$ is an example of annuity contingent.

$\Rightarrow$ Annuity contingent is an annuity arrangement in which the beneficiary does not begin receiving payments until a specified event occurs.

$\Rightarrow$ A contingent annuity may be set up to begin sending payments to a beneficiary upon the death of another individual who wishes to ensure financial stability for the beneficiary, or upon retirement or disablement of the beneficiary.

$\Rightarrow$ Car loan and House loan is not an example of annuity contingent, it's an example of annuity certain.