Which of the following statements concerning annuities is (are) correct?
1. A flexible premium annuity allows the insured the option to vary premium deposits; whereas, an annuity purchased with a single lump sum is known as a single premium annuity.
2. An immediate annuity is one whose first payment is due one payment interval from its purchase date; whereas, a deferred annuity provides income at some date in the future.
a. 1 only.
b. 2 only.
c. Both 1 and 2.
d. Neither 1 nor 2.