How soon can income payments begin in an immediate annuity?

In the context of immediate annuities, income payments typically begin right away, which aligns with option B, stating that payments can commence immediately upon purchase. Immediate annuities are specifically designed to start providing income soon after the initial investment, usually within one payment period, which is often within the first month.

Option A suggests that income payments can begin no later than one year from the purchase of the annuity. While this statement is technically correct, as it allows for payments to commence anytime within that year, it does not capture the essence of immediate annuities, which are meant to start payments more quickly.

The objective of an immediate annuity is to create a stream of income almost instantaneously following the premium payment, making it an attractive option for individuals looking for immediate income, such as retirees. So, while starting payments within a year is feasible, it's not representative of the immediate nature of the product.

In contrast, the remaining options indicate either a delay in payments or a time frame that goes beyond the intent of immediate annuities, which is not typical for this type of financial product.

In summary, immediate annuities are established to provide income payments very soon after the purchase, with common practice allowing for monthly payments