Chapter 5 Life Insurance: Annuities
Your client owns a market value adjusted annuity. In order to pay for a series of large, unexpected medical bills, he decides to surrender his policy prematurely. Which of the following will determine the penalty that the annuity owner will have to pay?
Current interest rate at the time of the surrender
Why is an equity indexed annuity considered to be a fixed annuity?
It has a guaranteed minimum interest rate
Which of the following is true regarding the annuity period?
It may last for the lifetime of the annuitant
Equity Indexed annuities
Seek higher returns
Which of the following is not true regarding the annuitant
The annuitant cannot be the same person as the annuity owner
which of the following best describes what annuity period is?
The period of time during which accumulated money is converted into income payments
Which of the following is not true regarding equity indexed annuities
They earn lower interest rates than fixed annuities
which of the following is true regarding a modified guaranteed annuity?
the owner is guaranteed a fixed interest rate for a specific period of Time
According to the nonforfeiture law, if the owner decides to surrender a deferred annuity prior to annuitization, the owner is entitled to which of the following?
Gauranteed surrender value