n NISM Certifications
XVII NISM Series XVII
Medium

A disadvantage of using an annuity as a source of retirement income is the typically high surrender charges associated with early withdrawal.

Practice question from NISM Series XVII- Retirement Adviser Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Default Risk

  2. High Surrender Charges

    Correct answer

  3. C

    Irregular income

  4. D

    Level of income is not known while investing

Why this is the answer

Annuities often impose penalties for early surrender, reducing flexibility.

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