Which of the following best describes payouts of a deferred annuity?

The statement that payouts of a deferred annuity occur after a specified waiting period accurately captures the essence of how deferred annuities function. In a deferred annuity, the accumulation phase takes place first, during which the policyholder makes premium payments and the funds grow on a tax-deferred basis. Payouts do not commence until the specified deferral period has ended, which can be several years down the line, depending on the terms of the contract.

This structure is significant because it allows policyholders to save and accumulate wealth over time before they start receiving income. The waiting period mentioned refers to the time between the initial investment and when the annuity payments begin, thus distinguishing it from immediate annuities, where payouts start almost right after the investment.

The specifics of a deferred annuity are designed to provide long-term savings solutions, making option B the most accurate description among the choices provided.