Which of the following individuals would be a likely candidate to purchase a deferred annuity?

A deferred annuity is designed for individuals who want to accumulate earnings on their investment over time, often as a means of saving for retirement. This type of financial product allows the account holder to grow their funds tax-deferred, meaning they do not have to pay taxes on the earnings until withdrawals are made, typically during retirement. This tax advantage can be particularly beneficial for those looking to maximize their savings and prepare for their future financial needs.

The option focusing on growing retirement funds tax deferred aligns perfectly with the intended use of a deferred annuity. Individuals in this category are often looking for a long-term investment strategy, where they can delay access to their funds while still benefiting from their growth in the meantime. This makes deferred annuities suitable for those planning their retirement or those who have a time horizon that extends beyond the immediate future.

On the other hand, individuals needing to start receiving benefit payments within a short timeframe would not benefit from a deferred annuity, as it requires time for accumulation. Those seeking to leave a death benefit may consider other products more closely aligned with meeting that need. Lastly, people who cannot afford life insurance may not be the most suitable candidates for a deferred annuity, as these products often cater to those with a financial strategy centered