Annuities

which of these statements concerning an individual straight life annuity is accurate?

Payments are made to an annuitant for life

An immediate annuity consists of a

Single Premium

P, age 50, purchased an annuity that P will fund with $500/ month for 15 years. The annuity will then pay P retirement payments after the 15 years. Which type of annuity did P purchase?

deferred

The payments on Q's annuity are no less than $250 quarterly. which of the following annuities does Q own?

flexible installment deferred annuity

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

variable

Which of the following is not included in an annuity contract?

AD&D rider

N, age 50, recently bought an annuity that will pay a guaranteed $2,000/month at age 70 for life. What type of annuity did N purchase?

Fixed Deferred

The type of annuity that can be purchased with one monetary deposit is called a(n)

Immediate annuity

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

Income that cannot be outlived by the owner

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