annuities

which of the following are equity indexed annuities typically invested in?

S& 500 An indexed annuity is a type of tax-deferred annuity whose credited interest is linked to an equity index — typically the S&P 500.

an immediate annuity consists of :

Single Premium

Which type of contract liquidates an estate through recurrent payments?

annuity

What is considered to be a characteristic of an immediate annuity?

benefit payments that start within one payment period of purchase

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n)

immediate annuity Immediate annuities start providing income payments usually starting within 30 days from the purchase date. Deferred annuities start providing income payments after the first year.

An annuity promises that, if the annuitant dies before receiving payments equal to the correct value, the payments will be continued to a beneficiary until an amount equal to the contract value has been paid. This type of annuity is called

installment refund annuity

T has an annuity that guarantees an income payment for the rest of his life. The contract also guarantees that if T dies before receiving payments for 20 years, the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?

life annuity with period certain

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n)

straight life annuity

variable annuities may invest premiums in:

common stock, money market securities & junk bonds

P is a forty year old woman and would like to purchase an annuity that will provide a lifetime income stream beginning at age sixty. Which of the following did she NOT buy?

immediate annuity