What must be assumed for the stated death benefit to apply in a deferred annuity?

The correct assumption for the stated death benefit to apply in a deferred annuity is that no withdrawals are made. This condition is crucial because if withdrawals are taken from the annuity, it can reduce the account's value, which may subsequently affect the death benefit.

In a deferred annuity, the stated death benefit typically refers to the amount that will be paid to the beneficiary upon the annuitant's death, which is usually tied to the account balance at the time of death. By not making withdrawals, the account has the potential to grow over time due to interest or investment returns, thereby ensuring that the full death benefit is preserved for the beneficiaries.

In contrast, if withdrawals were made regularly or if the maximum death benefit had to be claimed, these actions could lead to a decline in the total value of the annuity, resulting in a lower death benefit. Similarly, adhering to a minimum payment schedule may not be relevant to the calculation of the death benefit, as it depends on the account balance and the presence of withdrawals.