If an annuitant is making premium payments on a periodic basis, which type of annuity have they purchased?

An immediate annuity requires a lump-sum payment upfront and begins paying out to the annuitant almost immediately. This type does not involve periodic premium payments; rather, it converts a single premium into immediate income, making it unsuitable for the context of periodic payments.

A fixed amount annuity refers to the guarantee of a specific payout during the distribution phase, but it does not define the payment structure during the accumulation phase. This choice does not specify whether the annuity is immediate or deferred, thus failing to directly correlate with the act of making ongoing premium payments.

A fixed period annuity specifies the duration over which payments will be made after the accumulation phase, but it does not address the nature of the premium payments. Similar to the fixed amount option, this choice relates more to the payout structure rather than the type of annuity being purchased through periodic contributions.