PSI Life Exam Practice Test 2026 – Complete Preparation Resource

Question: 1 / 400

Which type of annuities does not require disclosure requirements for their sale?

Deferred annuities

Life annuities

Immediate annuities

Immediate annuities are structured in such a way that they provide immediate income to the annuitant after a lump sum payment is made. Because of their straightforward nature and quick payout timeline, they tend to have fewer complicated features compared to other annuity types. This simplicity often leads to less stringent disclosure requirements regarding their sale.

In contrast, deferred annuities, life annuities, and indexed annuities typically involve more complex terms and conditions. They usually come with various investment options, fees, and potential risks that necessitate more comprehensive disclosures to ensure that the buyer fully understands the product they are purchasing. This is particularly important for products that may affect individuals’ long-term financial planning and retirement income strategies.

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Indexed annuities

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