Chapter: Annuities

Which of the following is TRUE regarding the annuity period?

It may last for the lifetime of the annuitant.

Equity indexed annuities

Seek higher returns

In reference to fixed annuities, what comprises most of a life insurance company's general account?

Conservative investments like bonds

Which of the following will NOT be an appropriate use of deferred annuity?

Creating an estate

With the cash refund option, when the annuitant dies, what would the beneficiary receive?

The refund of the original amount minus payments already made

How long will a life annuity with an installment refund pay?

Until the balance of the initial premium is paid out in continued payments to the beneficiary after the annuitant dies.

All of the following information about a customer must be used in determining annuity suitability EXCEPT

Beneficiary's age.