Chapter 8 quiz

Joint and survivor life annuity

A husband and wife are receiving annuity payments. When the husband dies, the wife still receives annuity payments for life. What kind of annuity is this?

3 months after the annuity is bought

Bert purchased an immediate annuity with quarterly payments. When will this annuity start making payments

Tax on the interest earned

John is an annuitant who has surrendered his annuity at age 55. What will he pay?

A periodic income for life

Kim has purchased a straight life annuity. What will this type of annuity provide her with?

Refund life annuity

Kris is receiving annuity payments that has not yet paid an amount which is equal to the purchase price of the annuity. If she were to die, her beneficiary would continue receiving annuity payments until this amount has been reached. What type of annuity is this?

Fixed deferred

N, age 50, recently bought

Life Annuity with Period Certain

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?

Paid to the beneficiary for the rest of the certain period

Terry owns a 20 year life annuity certain and dies before the period of 20 years has elapsed. What happens to any monies left

the annuitant's payout period selection

The monthly benefit of an Annuity Certain is determined by

Lump-sum payment

Which of these is an element of a Single Premium annuity?