Final answer:
Immediate annuities provide a stream of payments over time rather than a lump sum immediately upon investment; thus, the statement is false.
Step-by-step explanation:
The statement that immediate annuities pay out all payments in one lump sum immediately upon the request of the investor is false. Immediate annuities, also known as income annuities, are designed to provide a stream of payments to the annuitant starting shortly after the initial investment is made.
Typically, the payments from an immediate annuity are structured to be distributed over a period of time, which can be for a fixed number of years or for the lifetime of the annuitant. They do not provide a lump sum payment; instead, they offer a guaranteed income stream that is beneficial for retirement planning.