Annuities

Annuities may be purchased with the following payment method EXCEPT

deferred

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

fixed annuity

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

the accumulation period

Who bears the investment risk in a fixed annuity?

the insurance company

Which of the following statements is TRUE about annuities?

they can provide a lifetime income

Annuities can be used fir all of the following reasons EXCEPT

to create an estate

When an annuity is written, who's life expectancy is taken into consideration?

Annuitant

An individual inherited a large sum of money at age 40 and wanted to us 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

Which type of annuity settlements stops when the annuitant dies?

Life annuity

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

Single premium immediate annuity