Which of the following is a primary use of annuities?

Annuities are primarily used as an investment tool that serves to accumulate funds over time, particularly for purposes such as retirement savings or future educational expenses. This feature allows individuals to make contributions over a period of time, benefiting from tax-deferred growth until they choose to withdraw the funds, typically when they retire or reach other financial goals.

By selecting this option, it emphasizes the long-term financial planning aspect of annuities, which facilitates building a financial cushion for major life events. This is why many individuals choose annuities as a way to secure their financial future, making them a popular choice for retirement planning.

The other options do not fully capture the primary purpose of annuities. While immediate cash flow is a characteristic of certain types of annuities, the main focus of traditional annuities is not specifically about providing immediate funds. Similarly, while some annuities might offer a lump sum payout or attempt to guarantee market returns, these features are secondary to their core function of accumulating savings for the future.