Annuities

annuities meeting the IRS guidelines

receive favorable tax treatment for funding qualified retirement plans

with a fixed annuity the annuitant will receive

the higher of either the guaranteed minimum rate or current rate

if an annuity defaults due to nonpayment of premium it can be reinstated within

1 year from the date it defaulted

if a deferred annuity is surrendered prior to annutization the surrender value of the annuity is guaranteed at

100% of the premium paid, minus any prior withdrawals and surrender charges

an applicant will get a free-look period of at least _____ days if the buyer's guide and disclosure document are not provided at or before the time of application

15

regarding installments for a fixed amount a specific amount of benefits will be paid until funds are exhausted

whether or not the annuitant is living

equity indexed annuities have a guaranteed minimum interest rate but the rate is tied to

Standard & Poor's 500

the equity in an equity annuity is linked to

an index like S&P 500

owners of modified guaranteed annuities are guaranteed

a fixed interest rate for a specific period of time

fixed annuities guarantee

a minimum amount of interest to be credit to the purchase payment

Equity indexed annuities are ______ risky than variable annuities

less

all annuities or pure endowment contracts must have a grace period of not less than ____ days

30

if an annuity is applied for by means other than a face-to-face meeting the disclose document and the buyer's guide must be sent to the applicant within ___ business days

5

when an annuity is written whose life expectancy is taken into account

annuitant

if a person covered by an annuity contract has had his age misstated the amount payable or benefits accruing under the contract will

be changed to be according to the correct age

Pure life option payments

cease upon the annuitants death regardless of the amount of the principal paid out

if an annuitant dies before annuitzation occurs what will the beneficiary receive

either the amount paid into the plan or the cash value of the plan whichever is the greater amount

insurance company keeps a percentage of returns for _______ annuities

equity indexed

what advantage of having a qualified annuity

favorable tax treatment

annuities certain are

short term annuities

all other factors being equal which types of annuities will generally provide the highest monthly income

straight life

one the annuity owner can

surrender a deferred annuity contract

bail out provision allow owners of the annuity to

surrender the annuity without charge if interest rates drop to a specified level

the market value adjustment in modified guaranteed annuities refers to

the difference between the contracted interest rate and the rate at surrender

equity indexed annuities have a guaranteed

minimum interest rate

annuities certain limit

the amount paid to a certain fixed period or until a certain fixed amount is liquidated

straight or pure life annuity will pay a specific amount of income for

the remainder of the annuitant's life. the payments will cease at death

the annuitants assumes the risk on investments with

variable annuities

annuity contracts provide waiver of surrender charges if

the annuitant is confined to a long-term care facility for at least 30 days

if the disclosure document and buyer's guide were included in the direct mail solicitation

the disclosure requirements will be considered met

who bears all the investment risk in a fixed annuity?

the insurance company

when a fixed annuity owner pays his/her insurance company a monthly annuity premium where is this money places?

the insurance company's general account

the annuity period is

the period of time during which accumulated money is converted into income payments

with an immediate annuity distribution starts

within 1 year of purchase

with any period certain death of the annuitant within the stated period will provide payments to the beneficiary only

for the remainder of the period certain

annuities certain have no

life contingencies

what license or licenses are required to sell variable annuities

life insurance license and a securities license

annuities do not create an estate but

liquidate it

fixed annuities provide

minimum guaranteed rate of interest -future income payments -equal monthly payments for life

installments for a fixed amount option has

no life contingencies

Life with guaranteed minimum will

pay the remaining principal to the beneficiary

another name for the accumulation period

pay-in period

the accumulation period is when

payments into the annuity grow tax deferred and earn interest

life income with period certain

pays benefits throughout the lifetime of the annuitant and also guarantees payment for a minimum number of years

if the buyers guide and the disclosure document are available to be printed from the insurer's web site

this will fulfill the disclosure requirements for applications received through the internet

joint life annuity settlement option pays benefit to

two or more annuitants, but stops upon death of the first

the main difference between immediate and deferred annuities is

when the income payments begin

if an annuity was defaulted due to nonpayment of premium what must happen before the policy can be reinstated

all overdue payments and any debt due the insurer must be paid

which ultimately determines the interest rates paid to the owner of a fixed annuity

insurer's guaranteed minimum rate of interest