Question

Which of the following is not an example of annuity certain ?

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

Answer 1

The correct option is B Daughter's Marriage

$\Rightarrow$ $Daughte{r}^{\prime }sMarriage$ is not an example of annuity certain.

$\Rightarrow$ Annuity certain is annuity that, as a minimum, guarantees a fixed number of payments. It continues over the life of the annuitant, even if he or she lives beyond the number of payments specified in the annuity contract.

$\Rightarrow$ In case the annuitant dies before exhausting the payments, a named beneficiary continues to receive the remaining number. Also called life annuity certain or life annuity certain and continuous.

$\Rightarrow$ House loan and Car loan are examples of annuity certain.