1. The fundamental purpose of an annuity is to:

Provide a stream of income that the owner cannot outlive

An annuity converts a sum of money into a stream of income, often guaranteed for life.

2. An immediate annuity differs from a deferred annuity because income payments begin:

Within about one payment interval after purchase

An immediate annuity begins income payments within roughly one payment period of purchase, unlike a deferred annuity.

3. A surrender charge in a deferred annuity is a fee the insurer applies when the owner:

Withdraws more than allowed during the surrender period

A surrender charge applies to early withdrawals exceeding the free amount during the surrender charge period.

4. A fixed indexed annuity credits interest based in part on:

The performance of a stated market index

A fixed indexed annuity credits interest linked to a market index while providing a minimum guarantee.