CH 7 Annuities

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

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

AD&D rider

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

Flexible Installment Deferred

T, age 70, withdraws cash from a profit-sharing plan and purchases a Straight Life Annuity. What will this transaction provide?

Income that cannot be outlived by the owner

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

Underlying equity investments

What type of annuity has a cash value that is based upon the performance of it's underlying investment funds?

Variable

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

Immediate annuity

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

the risk of living longer than expected

If an annuity is terminated prior to beginning of the income payment period, the contract owner receives

The contract surrender value at that time