Chapter 8

Kathy's annuity is currently experiencing tax-deferred growth until she retires. Which phase is this annuity in?

Accumulation period

An annuitant dies during the distribution period. What kind of annuity will return to a beneficiary the difference between the annuity value and the income payments already made?

Refund Annuity

Simon has purchased a fixed immediate annuity. His payment amount will be dependent upon principal, interest, and the contract's

income period

an immediate annuity has been purchased with a single premium. when does the annuitant typically begin receiving benefit payments

1 month

Under a non qualified annuity, interest is taxed after the

exclusion ratio has been calculated

Fixed annuities provide all of the following EXCEPT

hedge against inflation

How do interest earnings accumulate in a deferred annuity

on tax deferred basis

which of these will have the highest monthly payout upon annuitization

straight life

What will the beneficiary receive if an annuitant dies during the accumulation period?

the greater of the accumulated cash value or the total premium paid

Which of the following is considered to be the period when the accumulated value in an annuity is paid out?

annuitization phase

Phil is shopping for an annuity that guarantees he CANNOT outlive the benefits. Which of these benefit options would he choose?

guaranteed lifetime withdrawal benefit

which type of annuity guarantees a stated number of income payments whether or not the annuitant is still alive to receive them

life annuity certain

which annuity payout option allows the policy owner to choose a pre determined number of benefit payments

period certain

During the accumulation period, who can surrender an annuity?

policy owner

Andy the annuitant dies before the annuity start date. which of the following is true?

premiums paid plus interest earned is returned to the beneficiary