Which type of annuity can be funded with a single premium payment, a series of fixed premium payments, or flexible premium payments?

The correct answer is deferred annuities, which can be funded through a variety of payment methods, including a single premium payment, a series of fixed premium payments, or flexible premium payments. This flexibility allows investors to choose how they want to contribute to their annuity based on their financial situation and goals.

Deferred annuities are designed to accumulate funds over time, usually intended for long-term savings or retirement. When an investor funds a deferred annuity, the money grows tax-deferred until it is withdrawn or converted into an income stream at a later date. This characteristic makes deferred annuities particularly appealing for those looking to save for retirement or to receive payments at a future date.

In contrast, immediate annuities begin providing income payments almost immediately after a single premium payment is made. Retirement annuities typically refer to products designed for retirement savings but can include different types of annuities, many of which may not offer the same level of flexibility in payment options. Single-premium immediate annuities, specifically, require a one-time payment and convert that lump sum into an immediate income source, thereby not allowing for ongoing contributions like deferred annuities.