Which statement about annuities is true?

Annuities serve as a financial product designed to provide a stream of income. One of their primary characteristics is the flexibility they offer in terms of payout options. An annuity can indeed be structured to pay out income for a predetermined set term, such as 10 or 20 years, or it can be arranged to continue for the lifetime of the annuitant. This makes annuities a versatile option for individuals seeking to secure ongoing income during retirement or for other long-term financial needs.

The other statements about annuities do not hold true. Annuities are not limited to being funded by a single lump sum; they can also be purchased through a series of payments over time. Additionally, annuities typically allow for the designation of beneficiaries, ensuring that in the event of the annuitant's death, any remaining funds can be passed on. Lastly, while annuities are often used for retirement income, they are not exclusively for that purpose and can be beneficial for other financial goals as well.