Chapter 8:: Annuities

p Is a 40-year-old woman and would like to purchase an annuity that will provide a lifetime interest dream beginning at age 60. Which of the following did she not buy?

An immediate annuity, And immediate annuity is designed to make it's First benefit payment to the annuitant at one payment interval from the date of purchase

And annuity promises that, if in annuitant dies before receiving payment equal to current value, the payments will be continue to the beneficiary until an amount equal to contract value has been paid. This type of annuity is called

An installment refund annuity

N age 50 recently bought an annuity that will pay a guaranteed 2000/month At age 70 for life. What type of annuity did in purchase?

Fixed deferred,

N Purchases and annuity by making payments in an amount no less than $100 Quarterly. This describes which of the following annuities?

Flexible installment deferred

The type of annuity that can be purchased with one monetary deposit is called a

Immediate annuity

W Is a 39-year-old female who just purchased an annuity to provide income for life starting at age 60 all these would be acceptable annuity choices,except a

Immediate annuity

W is a 39-year old female who just purchased an annuity to provide income for life starting at age 60. All of these would be acceptable annuity choices EXCEPT a(n)

Immediate annuity

T,Age 70 with drawls cash from a profit-sharing plan and purchases a straight line annuity. What will this transaction provide?

Income that cannot be out lived by the owner

How does an indexed annuity differ from a fixed annuity?

Indexed annuity owners receive credited interest tied to the fluctuations of the linked index

T has a Annuity that guarantees an income payment for the rest of his life. The contract also guarantees that he dies before receiving payment for 20 years the remaining payments will be paid to his son for the balance of the 20 years. What type of annuity is this?

Life annuity with Period Certainty

Which of these is an element of A single premium annuity?

Lump-sum payment

Equity indexed annuity's are invested in which of the following?

S&P 500

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 guaranteed income for life. What type of annuity is best suited for her situation?

Single Premium

And immediate annuity consist of a

Single premium

Which of the following statements (tsa)regarding a tax sheltered annuity is incorrect?

The Income from the (tsa) Is received in come tax free

If an annuity is Terminated prior to beginning Of the income payment., The contract owner receives

The contract surrender value at that time

An individual who purchases a life annuity is given protection against

the risk of living longer than expected