Which statement concerning a deferred annuity is correct?

The correct response indicates that the owner of a deferred annuity can be the beneficiary, the annuitant, or neither. This highlights the flexibility inherent in the ownership structure of deferred annuities. The owner is the individual who has control over the annuity, including the ability to make decisions such as changing beneficiaries and investment options. The annuitant is typically the individual whose life is used to determine the benefits and payouts of the annuity. They can be different from the owner, which allows for various arrangements concerning financial planning and estate management.

This choice reflects the common arrangement in which individuals choose to separate ownership from the annuitant, thereby allowing beneficiaries to be designated or managed in a different manner than the person whose life is insured under the annuity contract. This flexibility provides opportunities for comprehensive estate planning, catering to the preferences and needs of the parties involved.

The structure of a deferred annuity and its provisions allow for the potential for multiple roles—owner, annuitant, and beneficiary—that can suit various financial strategies and goals a person may have.