L11 quiz

what occurs during accumulation period of annuity

allows annuity to build on a tax deferred basis

A type of contract, which is considered a savings instrument used for accumulating investment funds for purpose of eventually receiving those through systematic program of withdrawal

annuity

When annuity is considered 'flexible premium' annuity it means the premium payment amount is based on underlying investment of securities affecting amount that must be paid each month

false

Variable annuity

has a separate account

own single premium immediate annuity. how will payments be made

immediately following first premium

Which best describes annuity

it has an obligation that is different to the insurance company for both the accumulation period and liquidation period

When public purchases annuities, attempting to address risk of

outliving money they saved for retirement

An annuity is purchased to assist in retirement planning

true

Flexible-premium deferred annuity allows deferred interest accumulation, assuming money is on deposit with insurance company. There is no further amount required to be contributed and no specific prior of time contributions must be made

true