Unit 9 Life Quiz

Tracey is paying money into an annuity she hopes will support her in her retirement years. Her contract currently is in which of the following periods?

Accumulation period

Michelle purchases an annuity that offers a guaranteed minimum interest rate and a guarantee against loss of principal if the contract is held to term. However, if the S&P 500 moves upward, Michelle's annuity might end up accruing more than guaranteed minimum interest rate. Michelle has purchased

An equity-indexed annuity

Under which annuity do the benefit payments begin within 12 months of the purchase?

An immediate annuity

Which of the following factors is NOT used to determine annuity payments?

Annuitant's retirement date

The period during which a person receives the annuity benefits is called the

Annuitization Period

All of the following are factors in determining a life annuity payout amount EXCEPT for the

Beneficiary's age

Annuities exist to

Both accumulate a sum of money and distribute a lifetime income

Which type of annuity is most likely to provide death benefits if the insured dies during the accumulation period?

Deferred Annuity

Which of the following types of annuities is guaranteed against loss and not tied directly to the stock market?

Fixed

An annuity that guarantees a minimum rate of return is

Fixed annuity

Fixed annuities are supported by insurers

General Account

Under which of the following life annuity payout options do the payments stop when the first of two annuitants die and not continue on to the survivor?

Joint life

Albert has purchased an annuity that will pay him a monthly income for the rest of his life. If Albert dies before the annuity has paid back as much as he put into it, the insurance company has agreed to pay the difference to Albert's daughter. Albert has purchased a

Life with refund annuity

Which of the following is NOT a type of annuity product?

Retirement

Devon purchases an annuity that will pay a monthly income for the remainder of his life and then stop making payments. Devon has purchased

Straight Life annuity

Fixed period and fixed amount are types of

Temporary annuities

Which of the following types of annuities are regulated as securities?

Variable annuities

Liz purchases an immediate annuity. The annuity contract must be

a single premium annuity