n NISM Certifications
X NISM Series X
Medium

A person has accumulated sufficient corpus for retirement and is in the distribution stage. Which type of annuity is most appropriate for him?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Semi variable annuity

  2. Immediate life annuity

    Correct answer

  3. C

    Deferred life annuity

  4. D

    Variable annuity

Why this is the answer

In the distribution stage, the retiree needs immediate and regular income. An immediate life annuity begins payments immediately after purchase, providing a steady income stream.

Test yourself for real

Take a full NISM Series X mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.