1. An annuity is primarily used to:

Provide a stream of income, often during retirement

An annuity systematically liquidates a principal sum into income payments and protects against the risk of outliving one's savings.

2. A deferred annuity is characterized by:

An accumulation phase before income payments begin

A deferred annuity accumulates value on a tax-deferred basis during the accumulation phase before payments begin at a later annuitization date.

3. A variable annuity places contract values in separate accounts, which means:

The owner assumes investment risk and a securities registration is required to sell it

Variable annuity values fluctuate with separate-account investments, so the owner bears investment risk and the producer must hold a securities registration to sell them.

4. Annuitization of a deferred annuity refers to:

Converting the accumulated value into a stream of income payments

Annuitization is the process of converting the annuity's accumulated value into periodic income payments based on the chosen settlement option.