Annuities

Why is annuity suitable for retirement income?

Annuities may provide income the annuitant cannot outlive

An annuity owner is funding an annuity that will supplement her retirement. Because she does not know what effect inflation may have on her retirement dollars, she would like a return that will equal the performance of the Standard and Poor's 500 Index. She would likely purchase a(n)

Equity Indexed Annuity The interest rates of Equity Indexed Annuities are tied to the Standard and Poor's Index

An agent selling variable annuities must be registered with

FINRA

What describes a bail-out provision?

It allows the owner to surrender the annuity without a charge

The annuity owner dies during the accumulation period without naming a beneficiary. Annuity's cash value exceeds premiums paid. What happens?

The cash value will be paid to the annuitant's estate

What happens if a deferred annuity is surrendered before the annuitization period?

The owner will receive the surrender value of the annuity