insurance chapter 6
an individual inherited a large sum of money at age 40 and wanted to use it to provide a guaranteed income after his retirement at age 60. which of the following types of annuities would best meet this need
deferred
An annuity that guarantees a minimum rate of return is
fixed annuity
which type of annuity settlements stops when the annuitant dies
life annuity
An annuity begins payments to the annuitant one month after it is purchased. what type is it?
single premium immediate annuity
the time period which an annuitant contributes to an annuity is called
the accumulation period
Who bears the investment risk in a fixed annuity?
the insurance company
Annuities may be purchased with all of the following payment methods EXCEPT
deferred
When an annuity is written, whose life expectancy is taken into account?
annuitant
annuities can be used for all of the following reasons except
to create an estate
which of the following statements is true about annuities
they can provide a lifetime income
