Arkansas Life and Health Insurance Practice Exam 2026 – The Comprehensive All-in-One Guide for Exam Success!

Question: 1 / 400

Deferred annuities are normally purchased to defer ___________.

Penalties on early withdrawals

Deferred annuities are typically purchased to defer penalties on early withdrawals. This type of annuity allows the policyholder to postpone receiving payments until a later date, which may help them avoid penalties that could be incurred if they were to withdraw funds prematurely. By deferring withdrawals, individuals can potentially benefit from increased policy earnings over time.

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Taxes on any policy earnings

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