Chapter 7: Annuities

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

Lump-sum payment

Variable annuities may invest premiums in each of the following, EXCEPT:

Insurer's corporate business account

S recently received a $500,000 lump sum retirement buyout from her employer. She would like to buy an annuity that will immediately furnish her with a guaranteed income for life. What type of annuity is best suited for her situation?

single premium

An individual who purchases a Life annuity is given protection against:

the risk of living longer than expected

Which of the following is NOT included in an annuity contract?

AD&D Rider

The type of annuity that can be purchased with one monetary deposit is called a(n):

Immediate annuity

which of the following are equity indexed annuities typically invested in

S&P 500

An immediate annuity consists of a

Single Premium

The annuity that represents the largest possible monthly payment to an individual annuitant is a(n

Straight Life annuity

Which of the following is a characteristic of a variable annuity?

Underlying equity investments

T purchased a 100,000 single premium straight life annuity 5 years ago. he has received monthly payments since the inception of the annuity. if T dies, the insurance company

does NOT have to make further payments

the payments on Q's annuity are no less than $250 quarterly. which of the following annuities does Q own?

flexible installment deffered

k is an annuitant currently receiving payments. if she were to die before receiving payments equal to the correct value, a beneficiary will continue receiving payments until an amount equal to the contract value has been paid. this is called an

installment refund annuity

Which of the following statements regarding a Tax Sheltered Annuity (TSA) is incorrect?

the income from the TSA is received income tax-free

an _____annuity pays benefits based on units rather than stated dollar amounts

variable