Annuities

Which of the following is NOT true regarding an annuity certain?

Benefits stop at the annuitant's death.

An individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. Which of the following types of annuities would best meet this need?

Deferred

Annuities may be purchased with with all of the following payment methods EXCEPT

Deferred

Which of the following settlements stops when the annuitant dies?

Life annuity

What does an annuity protect the contract owner against?

Living longer than expected

An annuity begins payments to the annuitant one moth after it is purchased. What type is it?

Single premium immediate annuity

All other factor being equal, which of the following types of annuities will provide the highest monthly income?

Straight life

Who bears the investment risk in a fixed annuity?

The insurance company

Which type of annuity settlements is true about annuities?

They can provide a lifetime income

Annuities can be used for all the following reasons EXCEPT

To create an estate

When an annuity is written, whose life expectancy is taken into consideration

Annuitant

An annuity that guarantees a minimum rate of return is known as a/an

Fixed annuity

Which of the following has the right to surrender a deferred annuity contract?

Only the annuity owner

Variable insurance and variable annuities are regulated by

SEC, FINRA, and Departments of insurance.

The time period during which an annuitant contributes to an annuity is called

The accumulation period