Annuities
What is the basic function of an annuity?
A systematic liquidation of accumulated funds
Which of the following is not included in annuity contract?
AD&D rider. Beneficiary free look period and nonforfeiture benefits are included in annuity contracts
He is a 40 year old woman who would like to purchase an annuity that will provide a lifetime income stream beginning at age 60. Which of the following did she not by?
An immediate annuity
How does an indexed annuity differ from a fixed annuity?
An indexed annuity differs from a fixed annuity in that indexed annuity owners may receive credited interest tied to the fluctuation of the linked index
Which type of contract liquidate an estate through recurrent payments?
Annuity
A 45-year-old woman $100,000 in a scratch off lottery ticket. She purchased annuity that will pay her $1500 per month beginning at age 60. Which of these annuities did this woman purchase?
Deferred Fixed annuity
P age 50 purchased an annuity that p will fund with $500 a month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did people purchase?
Deferred annuity
In age 50 recently bought an annuity that will pay guaranteed $2000 a month at age 70 for life. What type of annuity didn't purchase?
Fixed deferred
The payments on Q annuity are no less than $250 quarterly. Which of the following annuities does Q own?
Flexible, installment, deferred
An individual to purchase as a life annuity is giving protection against?
I like annuity offers protection against the risk of living longer than anticipated
A contract owner terminate an annuity before the income payment. Begins. The owner will then receive?
If an annuity is terminated prior to beginning of the income payment. They contract and I received a contract surrender value at that time.
As recently received a $500,000 lump sum retirement buyout from her employer, she would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?
Immediate annuities are purchased with a single lump sum payment and will start providing income payments within the first year, but usually start in 30 days from the purchase date
W is a 39-year-old female who just purchased annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices except?
Immediate annuity
What type of annuity that can be purchased with one monetary deposit is called a?
Immediate annuity
What is considered to be a characteristic of a immediate annuity?
Immediate annuity is design to make its first benefit payment to the new tenant at one payment intervals from the date of purchase
All of the following statements regarding a tax, sheltered annuity, are true, except?
Income derived from the TSA is received income tax free Upon retirement payments, received by employees from the accumulated savings in tax, sheltered annuities are treated as ordinary income
T, 871 Charles cash from a profit, sharing plan and purchase as a straight life annuity. What will the transaction provide?
Income that cannot be outlet by the owner
K is an annuitant currently receiving payments. If she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. This is called a?
Installment refund annuity. An installment refund annuity promises that if the annuity dies before receiving payments equal to the correct value, the payment will be continued to a beneficiary until an amount equal to the contract value has been paid
Parivaar knew it is May invest premiums in each of the following except?
Insurance corporate business account
T has annuity that guarantees and income payment for the rest of his life. The contract also guarantees that a T dies before receiving payment for 20 years remaining. Payment will be made to a son for the balance of the 20 years. What type of annuity is this?
Life annuity with Certain.
Which of these is an element of a single premium annuity?
Lump sum payment
Which of these statements concerning an individual straight life annuity is accurate?
Payments are made to an annuitant for life
Which of the following are equity indexed annuities typically invested in?
S&P 500- an index annuity is a type of tax deferred annuity is credited interest is linked to an equity indexed. Typically the S&P 500.
An immediate annuity consist of a?
Single Premium
k has inherited a large sum of money. K purchases an annuity with this Sam on July 1 and start receiving payments on August 1. These payments will continue for as long as she and her spouse lives. Which type of annuity did k purchase?
Single premium immediate joint with survivor annuity. It also covers Kay and her spouse for the rest of their lives. This is nudity is classified as a single premium immediate joint with survivor annuity.
Annuity that represents the largest possible monthly payment to an individual annuitant is a?
Straight life annuity pays the largest monthly benefit to a single annuitant, because it is based only on life expectancy, but I create a risk that the annuitant may die early and forfeit much of the valley of annuity to the insurance company.
Hey variable annuity has which of the following characteristics?
Underline, equity investments
What type of annuity has a cash value that is based upon the performance of its underline investment fund?
Variable
A(n)------annuity pays benefits based on units rather than stated dollar amounts
Variable -annuity pays benefits based on units rather than specific dollar amounts
T purchased $100,000 single premium straight life annuity five years ago. He has received monthly payments since inception of the annuity. If T dies the insurance company?
With a straight life annuity the insured does not have to make further payments after the annuitant dies.