Which statement is true regarding funding of annuities?

Annuities can indeed be funded through various methods, including periodic premium payments. This flexibility allows individuals to make contributions to their annuity over time rather than requiring a single lump sum payment. By offering the option for periodic payments, annuities can be more accessible for individuals who may not have a large amount of capital on hand. This feature enables consumers to gradually accumulate funds within the annuity, which can then be used for retirement planning or other financial needs.

Funding through periodic payments can also help in managing cash flow and can encourage a disciplined saving approach over time. It caters to a wider range of individuals in terms of financial capability and investment strategy, making annuities a versatile option for retirement savings.

The other options suggest limitations or conditions that do not accurately reflect the functioning of annuities, as they can indeed be funded through different methods and do not necessarily restrict payments to a single form.