Pay one time into an annuity and it's finished; this money will grow interest from that point on.

Pay one time into an annuity and it's finished; this money will grow interest from that point on.

• A. Flexible premium
• B. Accumulation period
• C. Annuity period
• D. Single premium

Answer: (D)

The situation describes funding an annuity with one upfront payment that then grows over time. That's a single premium arrangement: you make a one-time lump sum, and the money remains in the contract to accumulate interest or investment returns until you start withdrawals or annuitize. The other terms refer to different funding or phase concepts—flexible premium means payments can be made at different times, the accumulation period is the growth phase before any payout, and the annuity period is the payout phase after you begin receiving income. So the one-time payment that grows from that point on fits a single premium annuity.

The situation describes funding an annuity with one upfront payment that then grows over time. That's a single premium arrangement: you make a one-time lump sum, and the money remains in the contract to accumulate interest or investment returns until you start withdrawals or annuitize. The other terms refer to different funding or phase concepts—flexible premium means payments can be made at different times, the accumulation period is the growth phase before any payout, and the annuity period is the payout phase after you begin receiving income. So the one-time payment that grows from that point on fits a single premium annuity.