What type of premium payment involves a single lump sum payment into an annuity?

The correct answer is a single premium. This type of premium payment involves making a one-time lump sum payment into an annuity, which immediately becomes the investment base for the annuity. This allows the annuity to begin accumulating interest or investment returns based on that initial payment.

Unlike periodic premiums, which require multiple payments over time, a single premium is straightforward and simplifies the funding process for the policyholder. When an individual opts for a single premium, they forgo the need for ongoing premium payments, which can be beneficial for those who prefer to make a single investment.

Flexible premiums allow policyholders to adjust their payment amounts and frequency, which is different from the commitment of a single premium. An annual premium would involve payments made every year, rather than a one-time payment. Each of these options serves different financial needs and preferences, but in the context of a one-time lump sum payment for an annuity, single premium is the only suitable choice.